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

Stonegate Capital Partners has initiated coverage on American Tungsten Corp. (CSE: TUNG), signaling growing investor interest in critical mineral companies during a period of global supply chain uncertainty. The coverage comes as American Tungsten reported a first-quarter 2025 net loss of C$1.87 million, a significant increase from C$63.7 thousand in the same period last year, primarily driven by expanded investor relations, exploration activity, and corporate development following the company's rebranding. Despite the increased loss, the company demonstrated financial strength with total assets rising 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 completing a multi-tranche private placement.

The company's financial position strengthened considerably with shareholders' equity more than doubling to C$2.04 million, and American Tungsten remains debt-free, providing significant flexibility for ongoing exploration efforts. 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, all aligned 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 that reflected strong institutional and insider demand, with proceeds designated to support exploration and development at the IMA Mine, a past-producing tungsten-molybdenum asset in Idaho with extensive historical infrastructure.

American Tungsten has strengthened its leadership team by appointing Dennis Logan as Chief Financial Officer and adding CEO Ali Haji to the Board of Directors, enhancing both financial leadership and corporate governance. Rehabilitation work has already commenced at the IMA Mine, with Rockhead Consulting contracted to reestablish underground access and drill stations. The company plans over 6,000 feet of underground drilling to support a maiden resource estimate and test the molybdenum porphyry system. Historical production records show 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's near-term objectives include publishing a new NI 43-101 report, initiating targeted drilling programs, and conducting metallurgical sampling to assess near-term production scenarios. The company received conditional approval to list on the TSX Venture Exchange, which signals improved capital markets access and enhanced visibility among investors. Beyond the IMA Mine, 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 the Star Project is not currently a production focus, it significantly enhances the company's critical mineral portfolio. American Tungsten is strategically positioned to become a domestic supplier of tungsten, a metal essential for defense applications, semiconductors, and electric vehicles, particularly amid tightening global supply and China's 2024 export ban. The company's Idaho location offers substantial advantages including low-cost power, water access, paved road entry, and availability of skilled labor, all of which reduce 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 aimed at securing domestic supply chains for essential materials.