Western Mines Group (ASX:WMG) has tapped private investors for $1.24 million to support and expand ongoing exploration activities at its Mulga Tank Nickel-Copper-Platinum Group Elements (Ni-Cu-PGE) Project.
The company is set to issue 4,243,000 placement shares at $0.28 to raise the funds. The placement is being conducted by Sanlam Private Wealth, which will be paid a fee of 6%.
Subject to shareholder approval, Western Mines Group Technical Director Ben Grguric intends to purchase $50,000 worth of placement shares as part of the capital raise.
The $19.70 million market capitalisation company expects the allocation and issue of the placement shares on or around 31 October 2023.
Western Mines says the funding boost will support ongoing diamond and reverse circulation (RC) drilling and the start of belt-wide exploration to target the unexplored komatiite channels upon the granted tenement E39/2299.
Western Mines notes that 49% of the placement shares will be issued to its top 20 existing shareholders, with several shareholders either maintaining or enlarging their interest in the company.
This includes Western Mines’ major shareholder Equentia Natural Resources.
Western Mines Group Chairman Rex Turkington says: “The placement received tremendous support from our existing shareholders, for which the board is very grateful.
“These funds will all be going into the ground to continue advancing Mulga Tank as we build on our exciting results from the project”
These funds will all be going into the ground to continue advancing Mulga Tank as we build on our exciting results from the project.”
Western Mines is scheduled to exhibit at the International Mining and Resources Conference (IMARC) in Sydney from 31 October to 2 November 2023. Mining.com.au is an official media partner of IMARC, which will showcase 470-plus mining leaders and resource experts throughout 7 concurrent conferences.
Western Mines Group is a mineral explorer focused on gold and nickel sulphide deposits in ‘major’ mineral belts of Western Australia.
The company had $3.27 million cash at hand as of 30 June 2023, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Western Mines Group
