Fox Tungsten Ltd (TSX-V:FOXT, OTC:HPYCF, FRA:1HC) Ltd CEO Stephen Gray talked with Proactive about the company’s successful $11 million bought deal financing and how it positions the company to accelerate work at the Fox Project.
Gray explained that the funding provides strong backing from existing investors, including cornerstone shareholders Waratah and PowerOne, who continue to support the company and maintain significant ownership. The capital raise gives Fox Tungsten the ability to execute a major exploration and development program this summer.
The company is planning a 20,000 metre drilling campaign at the Fox Project, with the primary objective of expanding the current resource.
Proactive: Welcome back inside our Proactive newsroom. And joining me now is Stephen Gray. He is the CEO of Fox Tungsten. And Stephen it's good to see you again. How are you?
Stephen Gray: I'm doing great, it's great to see you. It's been an exciting week for the company.
Yeah, well, you've been able to secure a bought deal private placement just over $11 million Canadian. First off, excitement, I would imagine, for the company, this gives you a lot of cash and a lot of runway.
Absolutely. This is fantastic news. We're grateful for the support from our investors and from the market. Now that we're fully cashed up, we can do the big program that we're planning this summer. With our funding, we'll be doing 20,000m at the Fox Project and looking to double the size of the resource and do the PEA. So all that's left to do now is do the work, and we're excited.
Stephen, talk to me a bit about the people that are investing within the company now and the support that you're receiving.
We've had two cornerstone shareholders, Waratah and PowerOne. They collectively own 30% of the company and have continued to participate. They will be pro-rata participating in this raise. One of our directors from Waratah stepped down due to regulatory requirements, but Waratah remains supportive and will nominate a replacement shortly.
Let's talk about the work ahead. You've got capital and a large drilling program planned, leading towards reports as well. When will the work start and what will it lead to?
The Fox Project is the highest grade tungsten deposit in the world at around 1% tungsten, equivalent to 11g gold or 14% copper. What we don't have is scale. This summer, we'll complete 20,000m of drilling to grow the resource, targeting a doubling this year. That will set the stage for a resource update and a PEA in the second half of 2027.
$11 million in the bank really helps. Great to catch up.
It will be a busy period. Thanks.
Quotes have been lightly edited for style and clarity