Stonegate Capital Partners Initiates Coverage on American Tungsten Corp. Amid Critical Mineral Supply Concerns

Stonegate Capital Partners has initiated coverage on American Tungsten Corp. (CSE: TUNG), a development-stage mining company focused on advancing its flagship IMA Mine project in Idaho. The coverage comes at a pivotal time for critical mineral supply chains, particularly for tungsten and molybdenum, which face growing demand from defense, semiconductor, and electric vehicle industries amid China's 2024 export ban on these strategic materials.

American Tungsten reported a net loss of C$1.87 million in the first quarter of 2025, compared to C$63.7 thousand in the same period last year, reflecting increased investment in investor relations, exploration activity, and corporate development following its rebranding. Despite the loss, the company strengthened its financial position with total assets rising to C$2.36 million from C$1.46 million in the previous quarter, driven by a higher cash balance of C$1.25 million following 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 programs.

Key expenses during the quarter included C$663.6 thousand for investor relations, C$191.3 thousand for exploration and evaluation, and C$461.8 thousand for professional fees, aligning with the company's aggressive ramp-up toward advancing its flagship project. In July 2025, the company completed an upsized C$7.0 million private placement, reflecting strong institutional and insider demand. Proceeds will support exploration and development at the IMA Mine, where rehabilitation work has commenced with Rockhead Consulting contracted to reestablish underground access and drill stations.

The IMA Mine project, located on patented claims in Idaho, represents a past-producing tungsten-molybdenum asset with extensive historical development and infrastructure. The project includes 21 patented claims with road access, water rights, grid power, and underground mine workings. Historical production records show approximately 198,000 standard units of WO₃-equivalent and over 2 million pounds of copper. Recent assays and legacy intercepts include 0.82% WO₃ over 30 feet and 475 feet at 0.247% MoS₂. Management plans to publish a new NI 43-101 technical report, initiate targeted drilling, and conduct metallurgical sampling to assess near-term production scenarios.

Beyond the IMA Mine, American Tungsten's Star Project in British Columbia's Skeena Division 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 kilometer-long anomaly, with early-stage surface samples returning iron values up to 63.3% Fe₂O₃. While not currently a production focus, the Star Project enhances the company's critical mineral portfolio and offers future optionality within a favorable jurisdiction.

The company's strategic location in Idaho provides significant advantages, including low-cost power, water access, paved road entry, and skilled labor, which reduce development risk and costs. American Tungsten is exploring non-dilutive funding opportunities through the U.S. Department of Defense and Department of Energy, aligning with national critical mineral initiatives aimed at securing domestic supply chains for essential materials. The company also received conditional approval to list on the TSX Venture Exchange, signaling continued corporate progress and improved capital markets access.

As global tungsten supply tightens due to China's export restrictions and increasing industrial demand, American Tungsten's progress toward establishing domestic production capabilities positions it as a potential strategic supplier for North American manufacturing and defense sectors. The company's focus on both tungsten and molybdenum—metals critical for everything from cutting tools and armor-piercing ammunition to semiconductor manufacturing and renewable energy technologies—makes its development timeline particularly significant for multiple industries facing supply chain vulnerabilities.