Falcon to take flight by Christmas - Dorsch

14th October 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Chalice Mining on Thursday said that the demerger of its gold assets would take place before the end of the year.

The company in July 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, dubbed Falcon Metals, 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 demerger is planned for the fourth quarter of this year,” Chalice MD Alex Dorsch told delegates at the Resources Rising Starts conference, in Perth.

Eligible Chalice shareholders are expected to receive one ordinary Falcon share for every three ordinary Chalice shares via an in-specie distribution, subject to Chalice shareholder and regulatory approval.

As part of the concurrent initial public offering, Falcon is expected to raise between A$15-million and A$30-million under a pro-rata priority offer to Chalice shareholders.

The demerger would allow Chalice to continue to focus on rapidly advancing studies at its flagship Julimar nickel/copper/platinum project, in Western Australia.