North American Tungsten (TSX-V:NTC) is planning to raise approximately CAD$5.5 million from investors to fund additional work on its CanTung Tungsten Mine and MacTung development project; both are located in Canada.
The North American focused tungsten producer recently restarted production at CanTung after prices for tungsten recovered from S185 per metric tonne in 2009 to approximately US$265 per metric tonne earlier this month.
Cantung is the only tungsten mine in North America, and is only one of a handful of tungsten mines outside of China and Russia.
Today the company announced today that it would offer convertible debentures to raise up to US$2.85 million.
Each debenture has a 3 year maturity and bears an interest of 10% per annum. The debenture is also convertible at a 45 cents per share until maturity. North American Tungsten additionally announced a non-brokered private placement of 7 million units at 38 cents per share, raising CAD$2.66 million. Each unit consists of one share and 2/7 of a share purchase warrant with an exercise price of CAD$1.00.
The Cantung Mine is located in the Nahanni area of western Northwest Territories, Canada, approximately 300 km by road northeast of Watson Lake, Yukon, close to the Yukon border. The mine is a primary producer of tungsten concentrate from open pit and underground mines.
The Mactung property is located in the Yukon in the Selwyn Mountain Range and covers the area around Mt. Allan, approximately eight kilometres northwest of MacMillan Pass. MacTung is forecast to run at 2,000 tonnes per day from an underground operation using conventional long hole plus cut and fill mining methods. The ore will be processed into both a premium gravity concentrate (67% WO3) and a flotation concentrate (55% WO3).