Following its “pivotal” nickel discovery last week, Western Mines Group (WMG) has completed a capital raise of $2.7 million to bolster the project.
The capital raise will go to expanding and accelerating the diamond drilling program at WMG’s Mulga Tank project.
Located in the Eastern Goldfields of WA, WMG’s Mulga Tank is considered highly prospective for nickel, copper, and platinum-group elements.
“These funds will be going into the ground and allow drilling to continue at Mulga Tank, likely for the rest of the year, as we build on our exciting recent results from the project,” MGW chairman Rex Turkington said.
The raise was completed via of a wave of new shares.
A total of 8,019,500 new fully paid ordinary shares were issued. The bulk went to sophisticated investors, with the remaining 662,000 issued to a major WMG shareholder, Equentia Natural Resources.
The announcement follows a trading halt on Tuesday that allowed MGW to capitalise on a favourable market in the wake of last week’s discovery at Mulga Tank.
WMG aimed to test drill the deepest part of a particular grant at its Mulga Tank project to gather geological data. The result was the discovery of an extensive nickel sulphide system.
The ASX reacted in kind to the news of the discovery.
The day prior to the discovery announcement, WMG was trading at $0.115 per share, which leapt to $0.315 per share when the news broke.
Share price peaked at $0.48 per share and has since cooled to $0.38, representing a 108 per cent increase in performance for the past month.
“(The drill hole) MTD023 was a big hole for WMG, in more than one sense,” WMG managing director Caedmon Marriot said.