DALLAS, TX -- June 4, 2026 -- American Tungsten Corp. (CSE: TUNG): Stonegate Capital Partners updates coverage on American Tungsten Corp. American Tungsten’s capital position and operating cadence have improved materially as it advances IMA. As of March 31, 2026, the Company reported C$51.1M of cash, C$52.5M of total assets, and C$51.0M of shareholders’ equity, following the March 2026 C$40.0M bought-deal financing. Q1 2026 net loss was C$5.8M, primarily reflecting C$4.8M of exploration and evaluation expense at IMA, including underground access, drilling, assays, and related field work. Subsequent to quarter-end, the Company received TSXV approval and began trading on the TSXV under “TUNG” on May 29, 2026, with the CSE delisting effective market close on May 28, 2026. In our view, the story has evolved from a better-capitalized restart concept into a more active two-track development platform centered on IMA: Phase I tailings evaluation / potential processing and Phase II underground mine restart.
IMA Mine Project: IMA remains the core asset, and the biggest recent win is that activity has scaled materially. The Company had completed 22 D-Level holes and 11 Zero Level holes totaling approximately 13,229 feet, with initial Zero Level results confirming multiple tungsten-bearing veins. Highlights included 17.8 ft grading 0.435% WO₃ and 1.16 oz/t Ag, 3.4 ft grading 1.02% WO₃ and 0.84 oz/t Ag, 9.6 ft grading 0.40% WO₃ and 0.65 oz/t Ag, and 3.0 ft grading 0.56% WO₃ and 1.42 oz/t Ag. On May 26, the Company announced a 35,000 ft surface and underground drill program, including 33 underground holes and 20 surface holes, with two surface rigs and two underground rigs. In our view, IMA has moved from early underground confirmation toward a larger resource-definition program with multiple sources of assay flow.
Tailings and Technical De-Risking: On June 2, the Company reported that all 35 boreholes from the Lower Tailings drill program intersected tungsten mineralization across the 30-acre tailings area. The program included 127 samples averaging 0.152% WO₃ and 0.269 oz/t Ag, with an average tailings thickness of 5.9 ft, a maximum depth of 13.5 ft, and estimated tailings volume of 190,000–200,000 m³. Management is advancing this work toward resource delineation, volumetric modeling, engineering evaluation, and process flowsheet development. In our view, the tailings opportunity adds a potential lower-capital path to first concentrate production while the larger underground restart opportunity continues to advance.
Beyond IMA: Mazda remains best framed as secondary optionality. The potential acquisition could further consolidate historically mineralized ground around IMA and add longer-term exploration and development upside, but it is not required for the core thesis. Given the newer tailings results and expanded 35,000 ft drill program, we view Mazda as additional optionality beyond tailings, underground drilling, and commercial/funding milestones which are near-term drivers. The Company also made a C$0.7M strategic investment in Viking Mines Ltd. on February 18, 2026, which is advancing tungsten projects in Nevada, adding to the Company’s North American tungsten exposure.
Outlook: Looking ahead, the focus remains on advancing IMA through a two track development strategy: Phase I tailings evaluation and potential processing, and Phase II underground drilling, rehabilitation, and restart planning. Management continues to position IMA as a potential U.S.-based tungsten supply source, but the near-term story now appears more clearly tied to tailings resource definition, metallurgy, permitting, and continued drill results.
Valuation: We use an EV/NAV estimate when valuing TUNG based on an estimated Base Case NAV of C$647.6m. We then apply an EV/NAV multiple of 0.3x to 0.5x with a midpoint of 0.4x, resulting in a valuation range of C$3.87 to C$5.91, with a midpoint of C$4.89, when applied to our Base Case NAV.
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SOURCE: Stonegate, Inc.
