American West Metals is seeking to list on the ASX next month, with proceeds from its IPO to advance zinc and copper projects in the US and Canada.
American West Metals is seeking to list on the ASX next month, with proceeds from its initial public offering to advance zinc and copper projects in the US and Canada.
The West Perth-based business intends to raise at least $11 million through the IPO, with 55 million shares to be issued at 20 cents each.
Canaccord Genuity is lead manager to the offer, which has the capacity to raise an extra $4 million.
The offer (not underwritten) opens on November 8 and is scheduled to close on November 19, with American West Metals seeking to list on the ASX on December 7.
Its market capitalisation is expected to be between $30 million and $35 million.
In the company’s prospectus, lodged with the Australian Securities and Investments Commission on October 29, non-executive chairman John Prineas said AMW would use the IPO proceeds to conduct exploration programs and complete the acquisition of its West Desert project in Utah.
West Desert is the company’s flagship asset and is thought to host 16.5 million tonnes of zinc and copper.
AMW’s other assets are the Copper Warrior project, also in Utah, which is estimated to hold 37mt, and the Storm and Seal project, located in Nunavut, Canada, estimated to hold 1mt of zinc and gold.
Mr Prineas, also the chair of St George Mining, said all three were advanced stage projects.
“The projects feature high-grade copper and zinc, creating leverage to forecast rises in the prices for these commodities,” he said.
The IPO proceeds will also be used to cover costs associated with the offer, as well as administration and working capital.
The company's board also includes managing director David O'Neill and non-executive director Michael Anderson.
AMW, incorporated in November last year, will list amid a flurry of Western Australian resources floats, with the latest being Hamelin Gold which commenced trading this afternoon.
