Stonegate Capital Partners has initiated coverage on American Tungsten Corp. (CSE: TUNG), reflecting growing investor interest in critical mineral companies during global supply chain uncertainties. In the first quarter of 2025, American Tungsten reported a net loss of C$1.87 million, compared to C$63.7 thousand in the same period last year, driven by increased investor relations, exploration activity, and corporate development following its rebranding. Despite the loss, total assets rose to C$2.36 million from C$1.46 million in the fourth quarter of 2024, supported by a higher cash balance of C$1.25 million after a multi-tranche private placement. Shareholders' equity more than doubled to C$2.04 million, and the company remains debt-free, providing flexibility for ongoing exploration efforts.
Key expenses included investor relations at C$663.6 thousand, exploration and evaluation at C$191.3 thousand, and professional fees at C$461.8 thousand, aligning with the company's aggressive ramp-up toward advancing its flagship U.S.-based project. In July 2025, American Tungsten completed a C$7.0 million upsized private placement, reflecting strong institutional and insider demand. Proceeds will support exploration and development at the IMA Mine, a past-producing tungsten-molybdenum asset in Idaho with extensive historical infrastructure. The company also appointed Dennis Logan as CFO and added CEO Ali Haji to the Board of Directors, enhancing financial leadership and governance.
Rehabilitation work has commenced at the IMA Mine, with Rockhead Consulting contracted to reestablish underground access and drill stations. Over 6,000 feet of underground drilling is planned to support a maiden resource estimate and test the molybdenum porphyry system. Historical records show production of approximately 198,000 standard units of WO₃-equivalent and over 2 million pounds of copper, with recent assays including 0.82% WO₃ over 30 feet and 475 feet at 0.247% MoS₂. Management aims to publish a new NI 43-101 report, initiate targeted drilling, and conduct metallurgical sampling to assess near-term production scenarios. The company received conditional approval to list on the TSX Venture Exchange, signaling improved capital markets access.
Additionally, American Tungsten's Star Project in British Columbia spans approximately 4,616 hectares and contains a large, skarn-hosted iron target with potential critical mineral byproducts. A recent airborne magnetic survey identified a significant 1.2 km-long anomaly, with early-stage surface samples returning iron values up to 63.3% Fe₂O₃. Although not yet a focus for production, the project enhances the company's critical mineral portfolio. Looking ahead, American Tungsten is strategically positioned to become a domestic supplier of tungsten, essential for defense, semiconductors, and electric vehicles, amid tightening supply and China's 2024 export ban. The company's location in Idaho offers low-cost power, water access, paved road entry, and skilled labor, reducing development risk. Management continues to explore non-dilutive funding opportunities through the U.S. Department of Defense and Department of Energy, aligning with national critical mineral initiatives.
