American West Metals (ASX:AW1) has announced plans to raise $7.8M in equity to speed up exploration at the Storm Copper Project in Canada.

The new Australian company said under the Income Tax Act (Canada), the company aims to raise $6.755M through 'Flow-Through Shares (FTS)' and $1.05M through a further placement at $0.14 per share.

It also said the FTS Placement facilitates tax incentives for eligible investors and is sourced from quality global investors.

American West managing director Dave O’Neill said: "This funding will allow the company to further ramp up exploration and resource drilling activities at the near-surface deposits at Storm - already shaping up as a very significant copper deposit."