Western Mines Raises $3.7M to Power Mulga Tank Nickel Exploration

Capital Raise Overview

Western Mines Group Ltd (ASX – WMG) has successfully completed a $3.71 million capital raise through a placement of 16.86 million shares priced at 22 cents each, accompanied by 4.2 million unlisted options exercisable at 40 cents. This marks the company’s largest capital raise since its IPO over four years ago and reflects growing investor interest in the nickel sector, particularly in high-potential projects like Mulga Tank.

Strategic Investor Participation

The placement attracted commitments from sophisticated and professional investors, including three new institutional funds, signaling a vote of confidence in Western Mines’ exploration strategy. Notably, Managing Director Dr Caedmon Marriott and Non-Executive Director Francesco Cannavo intend to participate by acquiring a combined 350,000 shares, pending shareholder approval. This insider participation often serves as a positive signal to the market about management’s conviction in the company’s prospects.

Use of Proceeds to Advance Mulga Tank

All proceeds from the placement will be dedicated to advancing exploration activities at the Mulga Tank Ni-Co-Cu-PGE Project, located in Western Australia’s under-explored Minigwal Greenstone Belt. Planned activities include further reverse circulation and diamond drilling, geochemical assays, geophysical surveys, metallurgical test work, and progressing towards an initial scoping study. The company also plans to expand belt-wide gold exploration following the grant of a new tenement, highlighting a diversified approach to resource development.

Market and Sector Implications

Chairman Rex Turkington emphasized that the successful raise and new institutional interest could mark a turning point in sentiment towards nickel exploration, a sector that has seen fluctuating investor enthusiasm. With a current market capitalization of approximately $23.8 million and cash reserves boosted by this raise, Western Mines is positioned to maintain its efficient exploration style while scaling up activities at Mulga Tank, which hosts Australia’s largest nickel sulphide deposit by contained nickel.

Looking Ahead

The company anticipates issuing the placement shares and options around 22 October 2025, with ongoing updates expected as exploration results come in. The combination of fresh capital, institutional backing, and management’s skin in the game sets the stage for potentially significant developments at Mulga Tank and beyond.