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 critical mineral projects in the United States and Canada. The coverage initiation comes at a pivotal time for the critical minerals sector, particularly for tungsten, which faces supply constraints following China's 2024 export ban on the strategic metal.

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. This increased loss reflects the company's aggressive ramp-up following its rebranding, with significant investments in investor relations (C$663.6 thousand), exploration and evaluation (C$191.3 thousand), and professional fees (C$461.8 thousand). Despite the increased spending, the company strengthened its financial position with total assets rising to C$2.36 million from C$1.46 million in the fourth quarter of 2024, 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 activities.

The company's recent developments include completing a C$7.0 million upsized private placement in July 2025, reflecting strong institutional and insider demand. Proceeds from this financing will support exploration and development at the flagship IMA Mine project. Concurrently, American Tungsten appointed Dennis Logan as Chief Financial Officer and added CEO Ali Haji to the Board of Directors, enhancing financial leadership and governance. The company also received conditional approval to list on the TSX Venture Exchange, signaling continued corporate progress and improved capital markets access.

The IMA Mine project, located on patented claims in Idaho, represents American Tungsten's primary focus. This past-producing tungsten-molybdenum asset features extensive historical development and infrastructure, including 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. The company has commenced rehabilitation work at the mine, contracting Rockhead Consulting 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.

Management plans to publish a new NI 43-101 technical report, initiate targeted drilling, and conduct metallurgical sampling to assess near-term production scenarios. The project's location in Idaho offers significant advantages, including low-cost power, water access, paved road entry, and skilled labor, which reduces development risk and operational costs.

Additionally, American Tungsten holds the Star Project in British Columbia's Skeena Division, spanning approximately 4,616 hectares. This project 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, and early-stage surface samples returned 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 timing of American Tungsten's development coincides with increasing global demand for critical minerals, particularly tungsten, which is essential for defense applications, semiconductors, and electric vehicles. China's dominance in tungsten production and recent export restrictions have created supply chain vulnerabilities, highlighting the strategic importance of developing domestic sources. American Tungsten's positioning aligns with national critical mineral initiatives, and management continues to explore non-dilutive funding opportunities through the U.S. Department of Defense and Department of Energy.

The initiation of coverage by Stonegate Capital Partners brings increased visibility to American Tungsten's story at a time when critical mineral supply security has become a national priority. As the company advances its projects through technical reporting, drilling, and permitting, it represents a potential solution to supply chain challenges facing multiple high-tech and defense industries.