Western Mines Group Ltd (ASX:WMG) has announced the successful completion of a capital raise, securing $2,742,099 before costs. The mineral exploration company, which focuses on discovering high-value gold and nickel sulphide deposits across a portfolio of projects in Western Australia, issued 16,822,694 fully paid ordinary shares at an issue price of $0.163 per share. This placement strengthens the company’s financial capacity to advance its exploration initiatives.
The capital raise was significantly supported by Lowell Resources Fund (ASX:LRT), which subscribed for 12,269,938 shares and now stands as WMG’s largest shareholder with a 10.6% interest. Lowell’s investment incorporates $1 million in cash and a further $1 million facilitated through an equity swap arrangement, whereby WMG will receive 499,002 units in LRT. The placement also garnered participation from professional investors and current Top 20 shareholders, including Equentia Natural Resources, which maintained its existing interest. WMG’s Non-Executive Director Francesco Cannavo intends to participate for 200,000 shares, subject to shareholder approval at an upcoming general meeting. All new ordinary shares are set to be issued utilising the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
The proceeds from this placement are primarily allocated to support ongoing exploration programs at WMG’s flagship Mulga Tank Ni-Co-Cu-PGE Project. Planned activities include an upcoming seismic survey, further reverse circulation and diamond drilling, and the completion of an initial scoping study for the project. WMG Chairman Rex Turkington noted that welcoming Lowell Resources Fund as a major shareholder serves as a strong endorsement of the Mulga Tank Project and the company’s exploration efforts to date.
