Western Mines Group Ltd: Capital Injection and Strategic Focus on the Mulga Tank Nickel‑Sulphide Project

Western Mines Group Ltd (ASX: WMG) has recently completed a capital‑raising exercise that strengthens its balance sheet and underpins the continued development of its flagship Mulga Tank nickel‑sulphide project. The company announced on 14 October 2025 that it had successfully placed 16,910,000 ordinary fully‑paid shares at an issue price of A$0.22 each, generating A$3.720 million before costs. The placement, carried out in a private offering, was accompanied by the issuance of 4,227,500 unlisted options—one per four shares placed—with an exercise price of A$0.40 and an expiry date of 31 December 2027.

Execution of the Placement

By 23 October 2025, WMG reported that 16,560,000 placement shares and 4,140,001 unlisted options had been fully executed. The remaining 350,000 shares and 87,500 options will be issued following a shareholders’ general meeting, likely scheduled for May 2026. Additionally, 1,550,909 unlisted broker options—also exercisable at A$0.40—were granted to Cygnet Capital in compensation for their role as lead manager of the placement.

The proceeds from the placement are earmarked exclusively for advancing the exploration and development programme at the Mulga Tank Ni‑Co‑Cu‑PGE Project, located in Western Australia. Planned activities include:

  • Resource‑constrained (RC) and diamond drill programmes to refine the geological understanding of the deposit.
  • Geophysical surveys and targeted trenching to identify high‑grade pockets.
  • Pre‑feasibility studies to evaluate the economic viability of a potential mining operation.

Market Context and Share Performance

At the close of 21 October 2025, WMG’s share price stood at A$0.23, positioned well below its 52‑week low of A$0.09 and approaching its 52‑week high of A$0.295. The company’s market capitalisation remains modest, at approximately A$21.9 million, reflecting its status as an exploration‑stage entity with a focused portfolio centred on nickel‑sulphide resources.

Forward Outlook

The capital raise provides Western Mines Group Ltd with a robust financial foundation to accelerate the Mulga Tank project’s development trajectory. By channeling fresh capital into targeted drilling and resource delineation, WMG seeks to deliver higher‑grade reserves that could justify a shift from exploration to production. The company’s presentation at the International Mining and Resources Conference (IMARC) in Sydney (21–23 October 2025) underscored its confidence in the project’s potential and its commitment to transparent communication with investors and industry stakeholders.

With the additional capital secured, Western Mines Group Ltd is positioned to translate its geological promise into tangible commercial value, while maintaining disciplined capital discipline and a clear focus on shareholder returns.