PERTH (miningweekly.com) – ASX-listed Chalice Mining on Tuesday said that the initial public offer (IPO) of its spin-off Falcon Metals, had raised A$30-million.
Chalice earlier this year flagged the demerger of its Australian gold assets into a standalone, listed Australian gold-focused exploration company, 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, Falcon Metals, holds 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 it is earning a 70% interest.
Chalice said on Tuesday that the IPO had closed oversubscribed.
Subject to receiving ASX approval and the satisfaction of other remaining conditions, Falcon will list on the ASX and start share trading on December 22.
Chalice told shareholders that the demerger would allow the company to focus on its world-class Julimar nickel/copper/platinum project and the new West Yilgarn province in Western Australia.
Following the ASX-listing, Falcon will be a new, high-profile gold exploration specialist led by a highly decorated board and management team.
With the strong starting cash position, Falcon will have a unique platform to make a tier 1 gold discovery in Victoria and Western Australia. Drilling activities are anticipated to commence at Pyramid Hill in January 2022.