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

American Tungsten (CSE: TUNG) has signed a letter of intent (LOI) with Pennsylvania-based Global Tungsten & Powders, one of the largest tungsten processors in the world, regarding an offtake on its flagship Ima project in Idaho.

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

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

Rehabilitation progress

American Tungsten said on Wednesday that a total of 115 feet of the Zero Level access tunnel have 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, it 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.

“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 ($45.2 million) market capitalization.