Western Mines Raises $2.74m with Lowell Resources as New Largest Shareholder

New Cornerstone Investor Shifts Western Mines Shareholding

Western Mines Group (ASX:WMG) has completed a $2.74 million capital raise that significantly reshapes its shareholder base. Lowell Resources Fund (ASX:LRT) has emerged as the company’s new largest shareholder, snapping up 12.27 million shares and crossing the 10% ownership threshold. This fresh backing comes through a combination of a $1 million cash injection and an equity swap arrangement, which sees Western Mines receive 499,002 LRT units valued at $1 million.

Placement Details and Escrow Conditions

The placement involved issuing 16.8 million shares at $0.163 each, using existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Of these, 10.49 million shares were issued for cash, raising $1.71 million before costs, while the remaining 6.13 million shares were issued under the equity swap agreement with Lowell. The shares issued through the swap are subject to a 12-month escrow, limiting immediate liquidity for those shares.

Western Mines’ Non-Executive Director Francesco Cannavo has signalled his intention to participate in the raise for 200,000 shares, pending shareholder approval at an upcoming general meeting under ASX Listing Rule 10.11. The company confirmed no fees will be paid on the Lowell investment or shares placed by the company, though two brokers facilitating professional investor introductions will receive a modest 6% fee totaling $14,836.

Capital to Drive Mulga Tank Exploration

Proceeds from the placement will be directed towards advancing the Mulga Tank Ni-Co-Cu-PGE Project, Western Mines’ flagship exploration asset. Planned activities include a seismic survey, further reverse circulation and diamond drilling, and completion of an initial scoping study. These efforts aim to build on recent high-grade nickel sulphide results that have highlighted the project’s potential to expand its mineral resource base and confirm its hybrid nickel sulphide system characteristics.

Chairman Rex Turkington welcomed Lowell Resources Fund’s entry, noting the fund’s track record in identifying early-stage resource opportunities. He described the investment as a strong endorsement of the Mulga Tank Project and the work led by Managing Director Caedmon Marriott and his team. The equity swap also positions Western Mines as a top 10 holder of LRT units, potentially aligning the interests of both companies.

Shareholder Support and Timing

Existing top 20 shareholders, including previous largest shareholder Equentia Natural Resources, maintained their stakes by participating in the placement. The company anticipates issuing the placement shares on or around 5 August 2026, marking a timely boost to its balance sheet ahead of critical exploration milestones.

Western Mines reported cash of $2.43 million as of 31 March 2026, so this raise significantly strengthens its funding position. With a market capitalisation around $21 million and a share price of $0.185 at the time of the announcement, the capital raise at $0.163 per share represents a modest discount to market, a typical feature of placements aimed at institutional investors.