Western Mines Group (ASX:WMG) has completed a capital raise of $2.73 million in order to expedite diamond drilling at the Mulga Tank Nickel-Copper-Platinum Group Elements (Ni-Cu-PGE) Project in Western Australia.
Under the placement, over 8.019 million new fully paid ordinary shares have been issued at an issue price of $0.34 per share.
Of these shares, more than 7.357 million placement shares will be issued to ‘sophisticated’ investors, through a placement undertaken by, Fund Management Company, Sanlam Private Wealth.
Additionally, a further 662,000 placement shares will be issued through a placement conducted by Western Mines to major shareholder, commodity trading and mining investment group, Equentia Natural Resources. The company adds that Equentia will continue to support Western Mines’s progress and maintain its 9% shareholding.
“These funds will be going into the ground and allow drilling to continue at Mulga Tank, likely for the rest of the year as we build on our exciting recent results from the project”
Commenting on the placement, Western Mines Group Chairman, Rex Turkington says: “The placement received tremendous support and my thanks go to our lead broker. These funds will be going into the ground and allow drilling to continue at Mulga Tank, likely for the rest of the year as we build on our exciting recent results from the project.”
Western Mines reports that Sanlam Private Wealth will be paid a fee of 6% on the amount raised, plus a management fee of $18,000 + GST. Subject to shareholder approval at an upcoming general meeting, Sanlam will also be issued 200,000 unlisted broker options with a $0.50 strike and expire on 13 April 2026.
The company states the proceeds of the placement will be used for the purpose of bolstering and expediting a diamond drilling program at the company’s Mulga Tank Project.
Western Mines Group is a mineral exploration company, focused on the exploration and discovery of ‘high-value’ gold and nickel sulphide deposits across a portfolio of ‘highly’ prospective projects, located on major mineral belts of Western Australia. The company has a diversified portfolio of projects including the Jasper Hill, Melita, Youanmi, Pavarotti, Rock of Ages, Broken Hill Bore, and Pinyalling projects.
Images: Western Mines Group Ltd
