American Tungsten in line for potential $25.5M loan
me-metals: American Tungsten (CSE: TUNG) has received a letter of interest from the US Export-Import Bank (EXIM) for a potential $25.5 million loan to fund mining development and milling facilities at its IMA mine in Idaho.
According to me-metals cited from mining.com, The loan, if approved, will help provide access to a domestic source of tungsten in the US, which currently relies heavily on imports — primarily from China, which dominates over 80% of the global supply.
The recent ban on tungsten exports by China underscores the need to establish a stable, US-domiciled supply chain to safeguard national security interests, American Tungsten said, noting the metal’s vital importance in key defense applications.
Shares of American Tungsten edged higher on the news to trade at C$1.84 apiece, with a market capitalization of approximately C$77 million ($54 million).
Past producer
The IMA project is the site of a historic underground mine that operated for 12 years post World War II. During that time, it produced nearly 200,000 metric ton units of tungsten trioxide (WO3).
In May, American Tungsten kicked off construction and building work to support exploration and mine planning at IMA. Two months later, it secured preliminary approval for its site remediation plan, which focuses on restoring the existing infrastructure to support future production goals.
To support the IMA mine development, the company recently closed C$18 million in share offerings at a price of C$2.58 each.
source: mining.com
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