Tungsten Co. With US Asset Well Positioned To Capitalize on Growing Demand
Research Report

1. Perpetua Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Tungsten Corp.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Stonegate Capital Partners, American Tungsten Corp., August 20, 2025

IMPORTANT DISCLOSURES AND DISCLAIMER (a) The research analyst and/or a member of the analyst’s household do not have a financial interest in the debt or equity securities of the subject company. (b) The research analyst responsible for the preparation of this report has not received compensation that is based upon Stonegate’s investment banking revenues. (c) Stonegate or any affiliate have not managed or co-managed a public offering of securities for the subject company in the last twelve months, received investment banking compensation from the subject company in the last 12 months, nor expects or receive or intends or seek compensation for investment banking services from the subject company in the next three months. (d) Stonegate’s equity affiliate, Stonegate Capital Partners, “SCP” has a contractual agreement with the subject company to provide research services, investor relations support, and investor outreach. SCP receives a monthly retainer for these non-investment banking services. (e) Stonegate or its affiliates do not beneficially own 1% or more of any class of common equity securities of the subject company. (f) Stonegate does not make a market in the subject company. (g) The research analyst has not received any compensation from the subject company in the previous 12 months. (h) Stonegate, the research analyst, or associated person of Stonegate with the ability to influence the content of the research report knows or has reason to know of any material conflicts of interest at the time of publication or distribution of the research report. (i) No employee of Stonegate has a position as an officer or director of the subject company. Ratings - Stonegate does not provide ratings for the covered companies. Distribution of Ratings - Stonegate does not provide ratings for covered companies. Price Chart - Stonegate does not have, nor has previously had, a rating for its covered companies. Price Targets - Stonegate does not provide price targets for its covered companies. However, Stonegate does provide valuation analysis. Regulation Analyst Certification: I, Dave Storms, CFA, hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report. For Additional Information Contact: Stonegate Capital Markets, Inc. Dave Storms, CFA [email protected] 214-987-4121 Please note that this report was originally prepared and issued by Stonegate for distribution to their market professional and institutional investor customers. Recipients who are not market professional or institutional investor customers of Stonegate should seek the advice of their independent financial advisor prior to taking any investment decision based on this report or for any necessary explanation of its contents. The information contained herein is based on sources which we believe to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. Because the objectives of individual clients may vary, this report is not to be construed as an offer or the solicitation of an offer to sell or buy the securities herein mentioned. This report is the independent work of Stonegate Capital Markets and is not to be construed as having been issued by, or in any way endorsed or guaranteed by, any issuing companies of the securities mentioned herein. The firm and/or its employees and/or its individual shareholders and/or members of their families and/or its managed funds may have positions or warrants in the securities mentioned and, before or after your receipt of this report, may make or recommend purchases and/or sales for their own accounts or for the accounts of other customers of the firm from time to time in the open market or otherwise. While we endeavor to update the information contained herein on a reasonable basis, there may be regulatory, compliance, or other reasons that prevent us from doing so. The opinions or information expressed are believed to be accurate as of the date of this report; no subsequent publication or distribution of this report shall mean or imply that any such opinions or information remains current at any time after the date of this report. All opinions are subject to change without notice, and we do not undertake to advise you of any such changes. Reproduction or redistribution of this report without the expressed written consent of Stonegate Capital Markets is prohibited. Additional information on any securities mentioned is available on request.

American Tungsten Corp. (TUNG:CSE; DEMRG:OTCQB; RK9:FSE) gained additional coverage when Stonegate Capital Partners initiated on it, reported Analyst Dave Storms in an August 20 research note. Stonegate did not rate or assign the junior mining company a price target, though, because its flagship earn-in asset is in an early stage and lacks a technical analysis.

American Tungsten acquires, explores, and evaluates mineral properties in the U.S. and Canada, targeting deposits of tungsten, molybdenum, and iron. Formerly Demesne Resources Ltd., the company was rebranded earlier this year with the name change to better reflect its focus on tungsten and other critical minerals. Recently, American Tungsten was approved conditionally to list on the TSX Venture Exchange.

"Amid tightening tungsten supply and China's 2024 export ban, American Tungsten is strategically positioned to become a domestic supplier of a metal essential for defense, semiconductors, and electric vehicles," Storms wrote.

Stock Specifics

The mineral exploration company, based in British Columbia, was trading at about US$0.98 per share at the time of his initiation report, Storms noted.

The company has 40.3 million shares outstanding.

Its market cap is US$39.5 million (US$39.5M), and its 52-week range is US$0.03–US$2.37 per share.

About the Flagship Asset

Storms discussed the key elements of the American Tungsten story, highlighting its current focus on advancing the IMA Mine project that it has an option to fully acquire over eight years. Historically, IMA produced tungsten, molybdenum, silver and other metals. Records indicate that about 198,000 standard units of tungsten trioxide (WO3) equivalent and more than 2,000,000 pounds of copper were produced at IMA in the past. Comprised of 21 patented claims, the IMA Mine project historically had extensive development and investment by about a handful of companies, and therefore is significantly derisked already.

IMA is in Idaho's well-established mining district in the eastern-central region, boasting a material amount of existing infrastructure, including roads, water and grid power. The state is mining friendly, is motivated to see projects advance from a regulatory standpoint quickly and efficiently and offers a skilled, experienced mining workforce.

Assays and intercepts encountered in the past at and more recently at IMA indicate the mineralized system there "remains both extensive and economically attractive," Storms wrote. Notable intercepts encountered include 0.82% WO3 over 30 feet (30 ft) and 0.247% molybdenum disulfide (MoS2) over 475 ft. Exploration work, including drilling in 2008 by a previous operator, showed MoS2 intersections up to 0.269% and WO3 intervals above 1%.

Plus, noted the analyst, the project offers significant exploration upside, particularly with respect to the molybdenum mineralization beneath the established tungsten deposits. Potentially, the resource could be expanded and further value created.

Plans for IMA Project

American Tungsten's plan for the modern tungsten-molybdenum IMA Mine project is to publish a new NI 43-101 technical report on it, begin targeted drilling there, and do metallurgical sampling to assess possible near-term production scenarios. More than 6,000 feet of underground drilling are planned to support a maiden resource estimate and test the molybdenum porphyry system. Toward these aims, the company started rehabilitation work and engaged Rockhead Consulting to re-establish underground access and drill stations at the project.

To fund exploration and development of IMA, the explorer completed a CA$7M upsized private placement. It also is looking into nondilutive funding opportunities through the U.S. Department of Defense and Department of Energy.

Significance of Tungsten

Storms pointed out that American Tungsten's intention for the IMA Mine project aligns with the U.S. Administration's focus on and work toward beefing up secure, domestic supply chains of critical minerals. Tungsten is especially critical given that little of it is produced outside of China and the metal is used in military hardware, such as missile technology, ammunition, hypersonic weaponry and tank armor. Projected global demand for tungsten is forecasted to "expand substantially," the analyst noted, supporting market growth to US$9.51 billion (US$9.51B) in value from US$5.55B, between 2023 and 2030.

"With a robust infrastructure, historical mining data, supportive regulatory environment, and strategic partnerships, American Tungsten Corp. is uniquely positioned to rapidly advance its exploration projects into production" to help mitigate supply chain vulnerabilities," Storms wrote.

Second Project in B.C.

American Tungsten holds an option to acquire the 4,616-hectare Star project, containing a large, skarn-hosted iron target with possible critical mineral byproducts, in British Columbia's Skeena Division. Prospective mineralization is suggested by a recent airborne magnetic survey showing a significant 1.2-kilometer-long anomaly and up to 63.3% ferric oxide (Fe2O3) shown in early-stage surface samples.

"Although not yet a focus for production, the Star project enhances American Tungsten's critical mineral portfolio and offers future optionality within a favorable jurisdiction," Storms wrote.

Management is an Asset

Led by Chief Executive Officer Ali Haji and President Murray Nye, American Tungsten's management has extensive experience and expertise in exploration, advancing mines to production, capital markets, mergers and acquisitions, and junior mining, wrote Storms. Haji, for instance, has more than 20 years in the industry, leading public companies, raising capital, and advancing critical mineral assets. Vice President of Exploration Austin Zinsser is a professional geologist who has successfully managed exploration projects in North America, including those of Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) and Midas Gold Corp. (MAX:TSX). Recently, American Tungsten's board appointed Dennis Logan as chief financial officer and appointed CEO Haji to the board to enhance its leadership and governance.

The caliber of the company's team has enabled it to secure strategic partnerships and access nondilutive financing. Further, American Tungsten's advisors worked on or provided expertise to most North American tungsten producers and explorers in the past, before China dominated the market in 2015.

"Together, this leadership team provides a balanced mix of operational, technical, and financial expertise that positions American Tungsten for successful development of its IMA Mine and broader growth as a U.S. supplier of defense critical metals," Storms wrote.

Q1/25 Financials in Brief

The company reported a net loss in Q1/25 of CA$1.87M, a much larger net loss than a year earlier when the net loss was CA$63,700 (CA$63.7K) but reflective of increased expenses after the rebranding. The primary first quarter expenses were CA$663.6K for investor relations, CA$191.3K for exploration and evaluation and CA$461.8K for professional fees.

Total assets in Q1/25 were CA$2.36M, up from CA$1.46M in Q4/24, thanks to a CA$1.25M cash injection from the private placement. Shareholders' equity more than doubled during Q1/25 to CA$2.04M. American Tungsten remained debt free.

What to Watch For

The next major catalyst for American Tungsten is completion of a technical analysis of the IMA Mine project, which, if positive, could lead to a company rerating, noted Storms.

"American Tungsten stands out with compelling upside driven by a combination of technical merit, historical production, and macro tailwinds," the analyst added.