Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) is undertaking an institutional placement to raise $100 million through the issue of about 16.7 million fully paid ordinary shares at a price of $6 per share.
The capital raising will provide the specialist explorer and developer with around 18 months of funding for continued exploration at Julimar and across the West Yilgarn, as well as substantially advancing the pre-feasibility study (PFS) for the Gonneville ‘starter mine’.
Chalice believes that its province-scale Julimar discovery is capturing attention as a strategic asset for Australia and the western world, given its rare palladium-nickel-cobalt content.
Gonneville exploration and PFS
Gonneville is a tier-1 scale, pit-constrained, strategic green metals resource with high-grade optionality and compelling growth potential.
The capital raising will permit Chalice to conduct step-out and infill drilling at Gonneville, with an updated mineral resource estimate targeted for early July 2022.
Chalice aims to increase the confidence level of in-pit resources, define resources in an underground category and define the overall extent of the mineral system.
Notably, the company is also targeting the completion of the Gonneville scoping study and substantially advancing the subsequent pre-feasibility study for an initial mine development
The PFS aims to de-risk the development project and begin the regulatory approvals process.
Top-tier consultants are on board to complete the studies and the global search for a project director is underway.
Julimar and West Yilgarn exploration
Chalice is planning to complete initial low-impact exploration drilling along the 30-kilometre-long Julimar Complex, across the Hartog, Dampier, Baudin, Jansz, Torres and Flinders targets.
In addition, the company aims to conduct reconnaissance exploration including ground EM, soil sampling and initial drilling across the 8,000 square kilometres West Yilgarn portfolio, including Julimar (regional), Barrabarra, South West, Narryer and Holt Rock.
Placement summary
Chalice’s placement represents about 4.7% of existing shares on the issue.
New shares issued under the placement will rank equally with existing shares on issue.
The placement price of $6.00 per share represents a 10.0% discount from the last close price of $6.67 per share on May 23, 2022.
The placement is not underwritten and the directors of Chalice and the joint lead managers reserve the right to accept placement oversubscriptions within the company’s capacity pursuant to ASX Listing Rule 7.1.
Bell Potter Securities Limited and Macquarie Capital (Australia) Limited are acting as joint lead managers for the placement.
Indicative placement timetable.