Western Mines Group (ASX:WMG) has completed a placement raising $1.08 million to fund exploration work at the Mulga Tank Project in Western Australia.
All of the proceeds will be used to support ongoing exploration, including ongoing metallurgical testwork, reverse circulation and diamond drilling, and geochemical assaying.
Western Mines, which has a market capitalisation of $14.9 million, says the proceeds will also be used for geophysics and technical work with the aim to deliver an initial mineral resource estimate.
Just over 5.9 million shares will be issued to sophisticated investors through the placement conducted by GBA Capital and Sanlam Private Wealth and a further 917,500 shares placed to Blue Spec Drilling and other significant shareholders.
Chairman Rex Turkington says proceeds will all be going into the ground to progress the latest results coming from the Mulga Tank Project — which was highlighted by the phase three drilling program.
“Thanks to our joint lead brokers GBA Capital and Sanlam for successfully executing this small capital raise,” he says.
On 21 November, Mining.com.au reported the company was heading to market to undertake a brokered capital raising in place of a previously secured $6 million funding facility.
In mid-July this year, Western Mines locked in an ‘at-the-market’ (ATM) facility with Alpha Investment Partners to provide funding flexibility and capacity to expand and accelerate exploration at the Mulga Tank Project.
On 17 October 2024, Western Mines reported it had received “plenty of exciting new information” for ongoing targeting work and geological modelling at the Mulga Tank Project.
All drillholes showed broad zones of nickel sulphide mineralisation, with elevated nickel and sulphur coincident with highly anomalous copper and platinum group metals.
The Mulga Tank Project is considered prospective for nickel, cobalt, copper, and platinum group metals and is a major ultramafic complex found on the under-explored Minigwal Greenstone Belt.
Western Mines Group is a mineral explorer focused on the discovery and development of gold and nickel sulphide deposits across its portfolio of assets located on major mineral belts of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: WMG
