Photo by: Bloomberg
PERTH (miningweekly.com) – Metals explorer Chalice Mining will raise A$70-million in a private placement to major institutions to fund ongoing exploration and pre-development work at its Julimar nickel/copper/platinum group elements project, in Western Australia.
The company on Friday said it had received firm commitments for the placement of 9.59-million shares at a price of A$7.30 each, representing a 5.7% discount to the company’s last closing price and a 5.9% discount to its five-day volume weighted average share price.
The placement shares will be issued under the company’s existing placement capacity.
In addition to the placement, Chalice has also announced a share purchase plan (SPP) aimed at raising a further A$10-million.
The SPP, also priced at A$7.30 a share, will allow existing shareholders to subscribe for up to A$30 000 of new shares in the company. The SPP is expected to open on May 19 and will close on June 9.
Chalice told shareholders that in addition to funding ongoing exploration and pre-development at Julimar, funding would also go towards ongoing exploration across the company’s West Yilgarn Province licence holding in Western Australia, including a ramp-up of reconnaissance exploration at Julimar, wide-spaced step-out drilling at Gonneville to determine the overall scale of the deposit and define extensions to the underground mineral resource, and drill testing of six recently defined greenfield targets within the largely unexplored West Yilgarn Province.
Funds would also go towards completing the scoping study and prefeasibility study for Gonneville.