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Chalice targets A$100m capital raise

1st December 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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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.

Edited by Creamer Media Reporter

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