Key Takeaways:
Fox Tungsten Ltd. (TSX-V:FOXT, OTC:HPYCF, FRA:1HC) has closed a bought deal financing for gross proceeds of just over $12 million, securing the funding required to advance its flagship tungsten project in southern British Columbia through 2026.
"This is a transformational deal for the company," Stephen Gray, CEO of Fox Tungsten, said in an interview. "This is the biggest raise we've ever done. And now that we have $12 million on our balance sheet, we're fully funded for our drill program this summer."
The financing, which was slightly upsized to $12.7 million, consisted of 6.1 million hard dollar units priced at 16.5 cents and 48.9 million charity flow-through units priced at 24 cents. Each unit includes one-half of a common share purchase warrant, exercisable at 22 cents until April 23, 2029. The strong investor support reflects both the project's quality and the strength of the tungsten market, where prices are at all-time highs.
The financing ensures Fox Tungsten is fully funded for its 2026 summer drill program and a subsequent Preliminary Economic Assessment (PEA). The company plans to deliver an updated resource estimate and the PEA in early 2027, a key step toward demonstrating the project's economic viability.
The primary focus of the upcoming drill program will be on resource expansion. Approximately 75% of the drilling is allocated to growing the inferred resource at the Fox Tungsten deposit, which is already considered one of the highest-grade tungsten projects globally.
"Our main focus this year will be growing the Fox Tungsten resource and then completing a PEA," Gray stated.
In addition to the main deposit, the company will conduct early-stage exploration to generate new targets across its 400-square-kilometre land package. This broader area holds potential for not only tungsten but also for molybdenum and copper, with drilling planned to follow up on geophysical targets identified last summer.
The financing comes at an opportune time, with tungsten prices at record highs amid soaring demand for critical minerals. Fox Tungsten's project, with an existing indicated resource of 582,000 tonnes of 0.83% WO3 and an inferred resource of 565,000 tonnes grading 1.23% WO3, is well-positioned to capitalize on these market dynamics. The grades are significantly higher than most other tungsten projects, making it a standout asset in the sector.
This article is for informational purposes only and does not constitute investment advice.
