Western Mines Group (ASX:WMG) has raised $1.54 million to fund exploration activities at its Mulga Tank Project in Western Australia.
Under the placement, more than 4.8 million shares were issued at $0.32 each to sophisticated investors, with 1.72 million of those being issued to Dundee Corporation and existing shareholder Blue Spec Drilling.
Western Mines, which has a market capitalisation of $26.22 million, has been engaged with Dundee Corporation for roughly three months, during which the Toronto-based firm conducted due diligence on both the company and Mulga Tank.
“Proceeds from this capital raise will all go into the ground, to continue progressing the exciting exploration programs and results coming from the Mulga Tank Project,” Western Mines Chairman Rex Turkington says.
All of the funds raised will be used to support ongoing exploration programs, including new and ongoing reverse circulation and diamond drilling, geochemical assays, metallurgical testwork, and technical work leading to an initial resource estimate.
Write to Aaliyah Rogan at Mining.com.au
Images: Western Mines Group
