Western Mines Group (ASX:WMG) has raised $1.287 million to support exploration programs at the Mulga Tank Project in Western Australia.
All proceeds will be used to support exploration programs at the Mulga Tank Project including restarting high-impact reverse circulation and diamond drilling, geochemical assays, geophysics, ongoing metallurgical testwork, and belt-wide gold exploration.
The company will issue 6.435 million shares at a price of $0.20 per share, and 6.435 million additional unlisted options with $0.30 exercise price.
Western Mines was approached by a group of investors, including drilling contractor Blue Spec, offering to invest $1 million at $0.20 per share – a 5% premium to 15-day volume weighted average price (VWAP) – with one for one additional option at $0.30 exercise price for each share subscribed, and a voluntary escrow on the shares of six months.
Just over 5.791 million unlisted options with an $0.30 exercise price and 31 July 2027 expiry will be issued using existing placement capacity. The remaining unlisted options will be issued following a general meeting of shareholders, likely in July.
Chairman Rex Turkington says the company is pleased to execute this raise, thanking existing shareholders and welcoming new holders.
“Whilst the royalty sales process is still ongoing, the proceeds of the placement allow us to recommence drilling at Mulga Tank sooner,” Turkington says.
Proceeds will be directed towards the expansion of Mulga Tank, with further reverse circulation and diamond drilling programs scheduled in the near future.
Geochemical assays and ongoing metallurgical testwork will also be completed, along with belt-wide gold exploration and geophysical surveys to occur upon grant of tenement E39/2299.
Western Mines Group is a mineral exploration company focused on the development of gold and nickel sulphide deposits in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Western Mines Group
