PERTH (miningweekly.com) – ASX-listed Chalice Mining on Monday flagged the possible demerger of its Australian gold assets into a standalone, listed Australian gold-focused exploration company.
The company told shareholders that plans for the demerger sprouted following a strategic review of Chalice’s portfolio, which concluded that a demerger of the gold assets, including the Pyramid Hill project in Victoria, was the optimal structure to maximise shareholder value.
The demerged entity would hold the largest land position in the Bendigo Zone in Victoria, and the Bendigo goldfield, while also holding the prospective Viking project, in Western Australia, where Chalice is earning a 70% interest.
“The proposed demerger provides an exciting opportunity for our shareholders to benefit from the creation of a standalone, well-funded Australian gold exploration company with a high-quality asset base in Victoria and Western Australia,” said Chalice MD Alex Dorsch.
“The board has made this decision after conducting a detailed review of our portfolio in light of the enormous success we have enjoyed over the past 18 months at our flagship Julimar nickel/copper/platinum project in Western Australia.
“The Julimar discovery has transformed the company and unlocked a new world-class mineral province in Western Australia, setting Chalice firmly on course to become a globally significant player in the critical green metals space,” said Dorsch.
The demerger would allow Chalice to continue to focus on completing the resource drill-out and to rapidly advance studies at Julimar, he added.
Advisors have now been engaged to start preparations for the proposed demerger, and the potential transaction structure would be finalised subject to legal, financial and taxation advice.
The demerger would be subject to shareholder and regulatory approvals.