American West Metals (ASX:AW1) has announced a Placement and Pro-Rata Non-Renounceable Rights Issue, which will raise a total of $2,655,418 (before expenses) and $2,665,418 (before expenses).

American West Metals is a new Australian company that focuses on the discovery and development of major base metal mineral deposits in Tier 1 jurisdictions of North America.

It says funds will be used for exploration and expenses for the Storm Copper Project in Canada, regional exploration at the West Desert and Copper Warrior Projects in Utah, USA, expenses of the Placement Offer and Rights Offer, and working capital and administration expenses.

The issue of shares to Directors Mike Anderson, Daniel Lougher and John Prineas will be subject to shareholder approval at an upcoming general meeting.