PERTH (miningweekly.com) – ASX- and TSX-listed Chalice Gold Mines has unveiled plans to raise A$100-milllion through an institutional placement and share purchase plan (SPP) to accelerate exploration activities and deliver a mineral resource and mining studies for the Julimar nickel/copper/platinum project, in Western Australia.
The institutional placement will consist of 24-million shares at a price of A$3.75 each, representing a 7.64% discount to the company’s last closing price on November 30, and a 3.9% discount to its five-day volume weighted average share price.
The institutional placement is expected to raise A$90-million, with Bell Porter Securities and Macquarie Capital acting as joint lead managers for the offer.
An SPP would also give shareholders the opportunity to subscribe for up to A$30 000 worth of additional shares, also at a price of A$3.75 a share, to raise an additional A$10-million.
The SPP is expected to open on December 8 and will close on January 12.
Chalice told shareholders that the raising would provide a two-year runway to support accelerated exploration and development at the Julimar project, including resource definition drilling, scoping and prefeasibility studies.
A maiden mineral resource is targeted for mid-2021.
A maiden scoping study at the Gonnevill deposit is targeted for the fourth quarter of next year, while a prefeasibility study is targeted for the fourth quarter of 2022.
Funds from the capital raise will also go toward supplementing existing cash on hand for corporate and working capital.