Western Mines lists on ASX following oversubscribed IPOwritten by Bella Palmer
The company raised $5.5 million in an oversubscribed IPO, which closed after issuing 27.5 million shares at $0.20 each
Western Mines makes debuts on the ASX today with a view to ramp up exploration on its Western Australian gold and nickel sulphide projects.
The company raised $5.5 million in an oversubscribed initial public offering (IPO), which closed early after issuing 27.5 million shares at $0.20 each. Melbourne-based corporate advisory firm Harbury was the lead manager to the offer.
Western Mines will have a tight capital structure with an $8.76 million market cap and an enterprise value of $3.26 million upon its listing on the ASX.
Western Mines holds eight exploration projects, its flagship asset being the Mulga Tank nickel-copper-platinum group elements (PGE) project in WA’s eastern goldfields. Its other core projects include the Melita gold and copper-lead-zinc project in the Kookynie district and the Jasper Hill gold project, south of Laverton, WA.
Fieldwork is already underway at the Mulga Tank project and exploration is expected to advance across the company’s entire portfolio as the IPO is now complete.
The company’s Mulga Tank project is a major dunite intrusive within the underexplored Minigwal Greenstone Belt.
Previous work has shown significant evidence of a working sulphide mineral system with historic holes drilled to depths of more than 200m intersecting nickel-copper-PGE sulphides. As such, it is considered highly prospective for nickel-copper-PGE mineralisation and is regarded as Western Mines’ key exploration focus. The Melita gold and copper-lead-zinc project lies in the highly sought-after Kookynie district of WA’s goldfields.
The Jasper Hill gold project, south of Laverton in the eastern goldfields, contains numerous prospective and untested gold trends extending from the neighbouring Lord Byron and Fish historic gold mines, which respectively produced 160,000 ounces and 87,000oz gold.
Western Mines is also actively exploring Youanmi (gold), Pavarotti (nickel-copper-PGE), Rock of Ages (gold), Broken Hill Bore (gold) and Pinyalling (gold).
The company completed a high-resolution ground gravity survey at Mulga Tank last month and a moving loop electromagnetic (MLEM) survey is scheduled to begin later in July to define drill targets.
At the Melita and Rock of Ages projects, recent work has included reconnaissance site visits, geological mapping and rock chip sampling.
Western Mines said the IPO proceeds will be used to “aggressively” execute the company’s targeted exploration plans for its project portfolio.
More than $4 million has been allocated for exploration expenses with the remainder of the raised funds to go towards IPO expenses and working capital.
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