Fox Tungsten closes $12.7 million bought deal financing
Fox Tungsten Ltd. [FOXT-TSXV] said Thursday it has raised $12.7 million from a bought deal private placement offering and will use the proceeds to advance exploration at the company’s Fox Tungsten Project in British Columbia.
In a press release, the company said the Fox Tungsten project is one of the highest-grade tungsten resources in the world, located in central B.C. near roads and power lines.
The company has reported an indicated resource of 582,000 tonnes of 0.83% W03, or 480,500 tonne units of contained tungsten. On top of that is an inferred resource of 565,000 tonnes of grade 1.23% W03 or 695,800 tonne units of contained tungsten.
“It is a premier 100%-owned critical minerals deposit, uniquely positioned to solve the West’s urgent tungsten supply deficit,’’ the company said. “The successful 2025 drill program extended mineralization at the RC & BN zones and an expanded 2026 exploration program is planned to grow the resource and enable a preliminary economic assessment (PEA),’’ the company said.
Drilling highlights last year included an intercept of 1.18 metres of 6.83% W03 from 31.2 metres down hole at the RC zone.
Tungsten carbide is a compound of tungsten and carbon, and is widely used for cutting tools, drilling equipment, mining machinery and wear-resistant parts due to its extreme hardness and heat resistance.
Meanwhile, Fox said the bought deal private placement offering consisted of 6.1 million hard dollar units priced at 16.5 cents per unit, and 48.9 million charity flow-through units priced at 24 cents per unit (including the partial exercise of the underwriters’ over-allotment option of 6.9 million charity flow-through units).
Each hard dollar unit will consist of one common share, plus one-half of one common share purchase warrant. Each Charity flow-through until will consist of one share plus one-half of one warrant, each of which will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada). Each warrant will entitle the holder to purchase one share at an exercise price of 22 cents until April 23, 2029.
Fox Tungsten shares were active on the news, easing 4.5% or $0.01 to 21 cents. The shares trade in a 52-week range of 25 cents and $0.04.
Other projects owned by the company include the Silverboss molybdenum-copper-gold-silver project which lies adjacent to Glencore Canada Corp.’s decommissioned Boss Mountain molybdenum mine in British Columbia and adjacent Hen-Art-DL gold and silver project, about 60 kilometres northeast of 100 Mile House.
On November 7, 2024, the company announced the closing of the sale of the Highland Valley Copper Project to Metal Energy Corp. [MERG-TSXV]. The company holds 2.35 million common shares of Metal Energy. The Highland Valley Project is immediately adjacent to Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) Highland Valley Copper operations in B.C., 50 kilometres from Kamloops.