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- Chalice Mining (CHN) spins out its gold projects through a demerger and IPO into a new gold-focused ASX-listed company called Falcon Metals (FAL)
- Chalice says the demerger will allow it to focus on its Julimar nickel-copper-platinum group element project
- Pending approvals, Chalice shareholders will be eligible for one Falcon share for every three CHN shares via an in-specie distribution
- Through a corresponding IPO, the company aims to raise between $15 million and $30 million under a pro-rata priority offer to Chalice shareholders
- Company shares are up 1.43 per cent to trade at $6.39
Chalice Mining (CHN) is spinning out its gold projects through a demerger and IPO into a new gold-focused ASX-listed company called Falcon Metals with the ticker code FAL.
The company is following through with its foreshadowed plan, with the new company taking on the Pyramid Hill project in Victoria and the WA-based Viking and Mt Jackson projects.
FAL will have its own board and management team with geologist and mining executives, Dr Mark Bennett appointed as Non-Executive Chair and Tim Markwell appointed as Managing Director.
Additionally, Chalice’s Managing Director and CEO Alex Dorsch will join the board of Falcon as a Non-Executive Director to facilitate the transition of the projects into the new standalone entity.
The demerger will see all of the Falcon shares on issue distributed through an in-specie dividend and capital return by Chalice, where shareholders will be able to receive one share in FAL for every three shares held in CHN.
This distribution is subject to shareholder approval.
Through an initial public offering, the company proposed to raise a minimum of $15 million and up to $30 million under a pro-rata priority offer to Chalice shareholders.
The priority offer will allow eligible shareholders to subscribe for an amount of shares in Falcon proportional to the number of shares held in Chalice as at the relevant record date.
Shares not taken up through this offer will form the shortfall offer, available to existing shareholders and new investors.
Chalice said the complete prospectus and offer documentation is being prepared and will be issued in due course.
Following the demerger, CHN said it will be able to focus on its Julimar nickel-copper-platinum group element project and new West Yilgarn province in Western Australia, where exploration and evaluation activities are reportedly accelerating.
Once admitted to the official list of ASX, Falcon plans to set up its headquarters in Melbourne, putting its principle focus towards the Pyramid Hill gold project which is located in the Bendigo Zone of Victoria.
Company shares were up 1.43 per cent to trade at $6.39 at 10:12 am AEST.
