IPO Watch: Junior explorer Western Mines just hit the ASX boards — here’s how it performed
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ASX debutante Western Mines (ASX:WMG) became the latest resources play to hit the ASX boards when it listed this afternoon at 1:30pm EST.
The company listed after raising $5.5m from investors at 20c per share in an oversubscribed capital raise.
WMG raised the capital to fund further exploration at eight prospective tenements across established mineral belts in Western Australia.
Its flagship project is Mulga Tank, which sits in the Minigwal Greenstone Belt and is considered “highly prospective” for nickel, copper and platinum group elements (Ni-Cu-PGE) mineralisation, the company said.
WMG mades its debut on a good day for gold stocks, amid a round of global market jitters attributed to concerns over the COVID-19 Delta variant.
After listing at 20c, WMG shares opened at 18.5c. Heading towards the closing bell, the stock was trading flat in its first afternoon of trade at 19c, for a small 5% decline on debut.
Along with Mulga Tank, WMG holds another six gold exploration projects including Melita, which is also prospective for copper-lead-zinc and sits near the Kookynie district in WA’s goldfields — home to a number of large gold projects including the 1.6Moz Ulysses project run by Genesis Minerals (ASX:GMD).
In its prospectus, Western Mines said it plans to deploy between $3.058ma and $3.608m of the funds raised towards drilling and exploration across its project portfolio.
The bulk of the funds will be allocated to its two projects at Mulga Tanka and Melita, where the company plans to spend between $1.615 and $2.015m for drilling and other expenses.
The company’s flagship Mulga Tank project comprises one granted tenement and one tenement application across an area which covers the entire Mulga Tank dunite intrusion, “considered by the Board to be highly prospective for Ni-Cu-PGE mineralisation”, the company said.
The dunite intrusion was first uncovered by BHP in the 1980s and was most recently explored by Impact Minerals (ASX:IPT) between 2013 and 2016, which carried out an 8-hole diamond drilling program followed by geophysical surveys on the dunite intrusion.
Previous work carried out gives WMG an “enviable dataset and launchpad to commence exploration”, the company said in its prospectus.
“The challenge now remains for WMG to identify locations where significant accumulations of these sulphides may have occurred.”