Western Mines Raises $1.287M via Placement at $0.20 per Share

Capital Injection to Restart High-Impact Drilling

Western Mines Group Ltd (ASX: WMG) has successfully completed a capital raise of $1.287 million, positioning the company to recommence its exploration drilling at the Mulga Tank Ni-Co-Cu-PGE Project in Western Australia. The placement involved issuing 6,435,000 fully paid ordinary shares at $0.20 each, alongside an equal number of unlisted options exercisable at $0.30, reflecting investor confidence in the project’s potential.

The funds will directly support a suite of exploration activities including reverse circulation (RC) and diamond drilling, geochemical assays, metallurgical test work, and broader gold exploration across the belt. This renewed capital injection comes at a pivotal time as Western Mines aims to build on its recent milestone of announcing a Mineral Resource Estimate exceeding 5.3 million tonnes of contained nickel, making Mulga Tank the largest nickel sulphide deposit in Australia.

Investor Support and Strategic Shareholder Engagement

The placement attracted a mix of new and existing investors, including four of Western Mines’ top 10 shareholders and drilling contractor Blue Spec Drilling, underscoring strong backing from key stakeholders. Notably, the new investors have agreed to a voluntary six-month escrow on their placement shares, signalling long-term commitment and alignment with the company’s growth strategy.

Chairman Rex Turkington expressed optimism about the capital raise, highlighting its role in accelerating drilling activities while the company continues to explore royalty sale options. "We’re pleased to have successfully executed this small capital raise and welcome a new Top 10 holder," Turkington said. "The proceeds allow us to recommence drilling at Mulga Tank sooner, which is critical for advancing our exploration objectives."

Strategic Use of Funds and Future Outlook

Western Mines plans to deploy the capital towards high-impact exploration programs, including ongoing metallurgical test work that could enhance the project's economic viability. The company also intends to expand its gold exploration efforts following the anticipated grant of tenement E39/2299, reflecting a diversified approach to resource development.

While the placement shares are being issued under existing ASX Listing Rules, some unlisted options will require shareholder approval at a forthcoming general meeting, expected in July. The company also disclosed a broker fee arrangement involving 6% cash and 500,000 options, a standard practice to facilitate capital raising.

With a current market capitalization near $19 million and cash reserves bolstered by this raise, Western Mines is well-positioned to advance its flagship project amid a competitive nickel market. The company’s broader portfolio, including gold projects at Jasper Hill and other base metal prospects, adds further depth to its exploration pipeline.