Fox Tungsten Co., Ltd. (foxt(TSXV) announced on Thursday that it has raised $12.7 million from its purchased 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 quality tungsten sources in the world and is located in central British Columbia near roads and power lines.
The company reported an indicated resource of 582,000 tons of 0.83% W03, or 480,500 tons of contained tungsten units. Furthermore, there is an inferred resource of 565,000 tons of 1.23% W03 grade or 695,800 tons of contained tungsten units.
“It is an important 100% owned mineral deposit and is uniquely positioned to solve the pressing tungsten supply deficit in the West,” the company said. “The successful 2025 drilling program has expanded mineralization in the RC and BN areas, and an expanded exploration program is planned for 2026 to develop the resource and enable a preliminary economic assessment (PEA) to be conducted,” the company said.
Last year’s drilling highlights included cutting 1.18m of 6.83% W03 from a 31.2m deep hole in the RC area.
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 purchased private placement offering consists of 6.1 million dollar units at 16.5 cents per unit, and 48.9 million charitable flow-through units at 24 cents per unit (including the partial exercise of the underwriters’ over-allotment option for 6.9 million charitable flow-through units).
Each fixed dollar unit will consist of one common share, plus one-half of a common share purchase warrant. Each flow-through share will consist of one share plus 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 gives the holder the right to purchase one share at an exercise price of 22 cents until April 23, 2029.
Shares of Fox Tungsten were active after the news, falling 4.5%, or $0.01, to 21 cents. Shares are trading 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 located adjacent to Glencore Canada Corp.’s Boss Mountain Molybdenum mine in British Columbia and the adjacent Hen-Art-DL gold and silver project, about 60 kilometers northeast of 100 Mile House.
On November 7, 2024, the Company announced the closing of the sale of its Highland Valley copper project to… Mineral Energy Company (He goes-TSXV). The company owns 2.35 million common shares of Metal Energy. The Highland Valley project is located next door TEC RESOURCES LIMITED (tic.b-TSX, TECK.A-TSX, tic-NYSE) Highland Valley Copper operations in British Columbia, 50 kilometers from Kamloops.
