PERTH (miningweekly.com) – Dual listed Chalice Gold Mines has beaten its capital raise targets with the company on Wednesday revealing it had received firm commitments for a A$100-million share placement to sophisticated, professional and institutional investors.
In addition to the placement, the company will also undertake a share purchase plan (SPP) aimed at raising a further A$10-million.
Chalice earlier this week unveiled plans to raise a combined A$100-million, consisting of A$90-milllion in a share placement and the A$10-million SPP, to accelerate exploration activities and deliver a mineral resource and mining studies for the Julimar nickel/copper/platinum project, in Western Australia.
“The demand for the placement was incredibly strong, with the book covered multiple times over the desired amount. This is 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,” said Chalice MD Alex Dorsch.
“Approximately 160 000 m of diamond and reverse circulation 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-km scale targets within the Julimar State forest, once approvals are obtained,” said Dorsch.
The share placement will now comprise some 26.7-million shares, which will be issued at a price of A$3.75 each, to be placed within the company’s existing placement capacity. The shares will be placed by December 8.
The SPP will allow shareholders to subscribe for an additional A$30 000 worth of new shares, also priced at A$3.75 each, and will close on January 12.