Chalice Gold Mines announced a $100 million institutional placement at $3.75 per share, to accelerate exploration activities at its Julimar Project in Western Australia. A further $10 million Share Purchase Plan for eligible shareholders is to open Dec 8th, also at $3.75 per share. Combined, the offer will issue around 26.7 million new shares. The issue price represents an 8% discount to the last closing price on Monday.
The billion-dollar company had entered a trading halt on Tuesday pending the announcement. Chalice will use the money to accelerate exploration within the renowned Julimar Nickel-Copper-Platinum Group Element Project in WA. The Chalice team has been undertaking exploration activities at the project all year, and the exploration results have sent its share price up almost 1600 per cent since January.
The announcement of a 6.5-kilometre electromagnetic anomaly at the Julimar project is September has propelled and maintained the rally in recent months.
Chalice’s Managing Director, Alex Dorsch said: “The demand for the placement was incredibly strong, with the book covered multiple times over the desired amount. This is a testament to the scale and quality of the discovery at Julimar, but also the potential of the region to become a new world-class base and precious metals mineral province.”
“Approximately 160,000 metres of diamond and 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. 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.”