Western Mines Group Raises $1.29 Million to Accelerate Mulga Tank Drilling

Highlights:

• $1.29 million Raised: Western Mines Group Ltd (ASX: WMG) successfully raised $1.287 million through a placement of 6.43 million shares at $0.20 each, issued at a 5% premium to 15-day VWAP.
• Exploration Acceleration: Funds will support recommencing high-impact RC and diamond drilling at the Mulga Tank Project, along with geochemical assays and metallurgical testing.
• Strong Investor Backing: Placement was led by a group of new investors and supported by four top 10 shareholders, including Blue Spec Drilling, with participants voluntarily accepting a 6-month escrow.

Capital Injection to Expedite Exploration

Western Mines Group Ltd (ASX: WMG) has successfully secured $1.287 million (before costs) through a strategic capital raise, as announced by the company. At the time of writing, the placement includes commitments for the issuance of 6,435,000 fully paid ordinary shares at $0.20 each—priced at a 5% premium to the company’s 15-day VWAP. Each share is also accompanied by one unlisted option exercisable at $0.30, expiring on 31 July 2027.

Use of Proceeds: Focus on Mulga Tank

The funds will be directed toward advancing exploration activities at Western Mines Group’s flagship Mulga Tank Ni-Co-Cu-PGE Project in Western Australia. This includes recommencing high-impact RC and diamond drilling, conducting geochemical assays and geophysics, and continuing metallurgical test work. Belt-wide gold exploration is also part of the strategy supported by this capital injection.

Support from Strategic Investors

The placement was initiated by a group of investors who approached the company with a $1 million offer, later bolstered by commitments from four of WMG’s existing top 10 shareholders, including drilling contractor Blue Spec Drilling. Notably, investors have voluntarily agreed to a six-month escrow on the placement shares, underlining their long-term commitment to the company.

Governance and Shareholder Approval

The majority of the options (5,791,500) will be issued under the company's existing placement capacity in accordance with ASX Listing Rule 7.1. The remaining 643,500 options will be issued following shareholder approval, expected at a general meeting scheduled for July. Chairman Rex Turkington welcomed the successful raise, noting that it would enable drilling operations to resume ahead of finalizing the company's ongoing royalty sales process.

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