American Tungsten inks offtake deal for Ima mine in Idaho, stock rises

[Redator]

American Tungsten (CSE:TUNG) (OTCQB:TUNGF) announced Wednesday it has signed a Letter of Intent (LOI) with its US-based offtake partner, Global Tungsten & Powders, one of the largest tungsten processors in the world.

The company is advancing its Ima tungsten project in Idaho,  a past-producing underground tungsten mine situated on 22 patented claims located in east central Idaho. Between 1945 and 1957, the property produced approximately 199,449 metric ton units of tungsten trioxide (WO3). It was subsequently explored for molybdenum and tungsten by various operators between 1960 and 2008.

In July, American Tungsten secured preliminary approval for its site remediation plan, which focuses on restoring the existing infrastructure to support future production goals. In May, it kicked off construction and building work to support exploration and mine planning at the Ima project.

IMA rehabilitation progress

The company reported Wednesday a total of 115 feet of the Zero Level access tunnel has now been successfully rehabilitated, measured from the portal entrance. 

Rehabilitation efforts are now within the heart of the main collapsed zone, currently estimated to span approximately 50 feet, the company said. 

A site visit was conducted this month to review the Zero Level rehab work, the D Level underground workings, the historic tailings area across the road from the canyon, and the broader site area.

The MSHA inspector expressed confidence in the site’s progress, the company said, adding that a radon measurement taken within the tunnel yielded a zero reading, affirming a safe working environment.

“Our strategic agreement with Global Tungsten & Powders marks a pivotal milestone in our emergence as a leading domestic supplier of high-grade tungsten,” American Tungsten CEO Ali Haji said in a news release. “This LOI not only affirms robust market demand but also reflects the deep confidence our partners place in our technical capabilities and long-term vision.”

“With this partnership in place, American Tungsten remains firmly on track for near-term production and a full-scale restart of the IMA Mine—delivering on our promise to build a resilient, future-ready supply chain for this critical mineral,” Haji said. 

Work on the zero level tunnel is approximately 80% complete, Haji added. 

American Tungsten’s stock was up 6.8% in Toronto at market close. The company has a C$62.8 million ($45.2m) market capitalization.