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Chalice Mining offers shareholders opportunity to participate in $10 million SPP

Published: 03:53 08 Dec 2020 GMT

Chalice Mining Ltd - Chalice Mining offers shareholders the opportunity to subscribe for new shares under SPP to raise $10 million
Chalice directors, who are eligible, intend to participate in the SPP

Chalice Mining Ltd (ASX:CHN) (OTCMKTS:CGMLF) (FRA:C8U) is offering shareholders the opportunity to subscribe for new shares under a share purchase plan (SPP) to raise A$10 million. 

On December 2, the company completed a placement to raise A$100 million before costs to institutional, sophisticated and professional investors of around 26.7 million shares at an issue price of A$3.75 per share.

The board is now offering the opportunity to shareholders to subscribe for new shares under the SPP as most of the company’s loyal shareholders did not have the chance to participate.

Shareholders will be able to apply for up to a maximum of A$30,000 worth of shares at A$3.75 per share if they have a registered address in Australia or New Zealand at the record date.

The issue price is equal to the price at which the company undertook its placement. The issue price represents:

  • A 7.6% discount to the closing price of the shares on November 30, 2020, being the last trading day before the placement and the SPP were announced; and
  • A 3.9% discount to the volume-weighted average market price of shares traded on ASX over the five trading days ending November 30.

This SPP is targeting to raise up to a maximum of A$10 million before costs.

Exploration fully funded

Post raising, Chalice will be fully funded to support accelerated exploration and development activities at its Julimar Nickel-Copper-PGE Project in WA, including:

  • Around 160,000 metres of resource definition drilling in order to define a maiden mineral resource estimate (majority in measured and indicated categories, constrained to an open-pit) for the Gonneville PGE-nickel-copper-cobalt-gold discovery by mid-2021;
  • Complete scoping and pre-feasibility studies for the Gonneville discovery by around Q4 2021 and Q4 2022 respectively;
  • Initial drilling at new EM anomalies within the Julimar State Forest – namely the 6.5-kilometre-long Hartog EM Anomaly (subject to access approval); and
  • Initial regional exploration activities within the greater than 8,000 square kilometre position in the new West Yilgarn Province, plus continued generative exploration at the Pyramid Hill Gold Project (Vic) and Hawkstone Nickel-Copper-Cobalt Project (WA).

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