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- Chalice Mining (CHN) is gearing up for a $110 million capital raise
- Roughly 26.7 million new fully-paid ordinary shares will be issued to sophisticated, professional and institutional investors at $3.75
- This price is a 7.6 per cent discount to Chalice’s closing price of $4.06, and a 3.9 per cent discount to the five-day volume-weighted average price
- As well as the placement, Chalice will be undertaking a share purchase plan (SPP) with aims to raise up to $10 million
- Chalice will use the money from both the placement and SPP to accelerate exploration and development activities at its Julimar project in WA
- The company has also announced it has formally changed its name from Chalice Gold Mines to Chalice Mining
- The name change was approved by shareholders at the annual general meeting on November 25
- Shares in Chalice are down 5.17 per cent and are trading at $3.85
Chalice Mining (CHN) is gearing up for a $110 million capital raise.
The billion dollar company entered a trading halt just yesterday but did not reveal how much it intended to raise or what it would use the funds for.
The funds will be raised via the issue of roughly 26.7 million new fully-paid ordinary shares to sophisticated, professional and institutional investors at $3.75.
This price represents a 7.6 per cent discount to Chalice’s closing price of $4.06 on November 30, and a 3.9 per cent discount to the five-day volume-weighted average price.
As well as the placement, Chalice will undertake a share purchase plan (SPP) with aims to raise up to $10 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares at the same price as the placement.
Despite capping the SPP at $10 million, Chalice reserves the right to change it at its discretion.
At this point, the SPP will open on December 8 and close on January 12. Shares will then be issued on January 21 and begin trading on the ASX on January 22.
Chalice will use the money from both the placement and SPP to accelerate exploration and development activities at its Julimar nickel-copper-platinum group element (PGE) project in WA.
Specifically, the company will aim to define a mineral resource estimate, complete scoping and pre-feasibility studies, and begin initial drilling at new electromagnetic (EM) anomalies.
“Approximately 160,000 metres of diamond and reverse circulation (RC) drilling is now planned at Gonneville to support the delivery of a maiden mineral resource in mid-2021, which will then lead into mining studies planned over the following 18 months,” Managing Director Alex Dorsch commented.
“We have also earmarked significant funding for initial drill testing of the compelling multi-kilometre scale targets within the Julimar State Forest once approvals are obtained,” he added.
The company has also announced it has formally changed its name from Chalice Gold Mines to Chalice Mining.
The name change was approved by shareholders at the company’s annual general meeting on November 25. Chalice attributes the transition to a major platinum group element (PGE)-nickel-copper-cobalt-gold discovery at Julimar earlier this year.
Shares in Chalice are down 5.17 per cent and are trading at $3.85 at 1:28 pm AEDT.
