Western Mines Issues 16.56M Shares and 4.14M Options in $3.72M Placement
Western Mines Group has completed a major capital raising, issuing over 16.5 million shares and unlisted options to fund expanded exploration at its Mulga Tank project.
- Raised A$3.72 million through placement of 16.56 million shares
- Issued 4.14 million unlisted options with $0.40 exercise price
- Additional shares and options to be issued after May 2026 shareholder meeting
- Broker options granted to Cygnet Capital as placement fee
- Funds earmarked for drilling, assays, surveys, metallurgical work, and scoping study
Capital Raising Completed
Western Mines Group Ltd (ASX, WMG) has successfully completed a significant capital raising initiative, issuing 16.56 million new shares at 22 cents each to raise approximately A$3.72 million before costs. This placement forms a critical part of the company’s strategy to advance its flagship Mulga Tank Ni-Co-Cu-PGE Project in Western Australia.
Alongside the shares, the company issued over 4.14 million unlisted options exercisable at 40 cents, expiring at the end of 2027. These options provide investors with potential upside should the company’s exploration efforts translate into value. The remaining 350,000 shares and 87,500 options are scheduled for issuance following a general meeting of shareholders expected in May 2026.
Broker Incentives and Strategic Use of Funds
As part of the placement arrangement, Western Mines also granted 1.55 million unlisted broker options to Cygnet Capital, the lead manager of the placement, aligning incentives for ongoing support and market engagement.
The funds raised will be directed towards a comprehensive exploration program at Mulga Tank, including reverse circulation and diamond drilling, geochemical assays, geophysical surveys, and metallurgical test work. These activities are designed to refine the project’s geological understanding and support the development of an initial scoping study. Additionally, the company plans to pursue belt-wide gold exploration once the relevant tenement is granted.
Regulatory Compliance and Forward Outlook
Western Mines has complied with all relevant provisions of the Corporations Act in issuing the placement shares without a formal disclosure document, relying on exemptions for sophisticated and institutional investors. The company confirmed there is no excluded information that would affect the securities’ issuance.
Looking ahead, the upcoming shareholder meeting in May 2026 will be a key milestone for the company as it finalizes the remaining share and option issuances. Investors will be watching closely to see how the exploration results unfold and whether the company can translate this capital injection into tangible progress at Mulga Tank.
Bottom Line?
Western Mines’ fresh capital positions it well to unlock Mulga Tank’s potential, but the next shareholder meeting and exploration results will be pivotal.
Questions in the middle?
- What will be the outcome of the May 2026 shareholder meeting regarding remaining share issuances?
- How will initial drilling and assay results influence the upcoming scoping study?
- Could the unlisted options’ exercise price of $0.40 signal management’s confidence in project upside?
