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- Chalice Gold Mines (CHN) has completed a $30 million placement to fund the next phase of exploration at its Julimar Project
- More than 28 million shares were issued to institutional and sophisticated investors at a price of $1.05 per share
- However, Chalice actually received commitments for more than $75 million
- Because of this, Executive Chairman Tim Goyder agreed to sell 10 million of his shares at a price of $1.05 each
- This ensured that several other parties could invest
- With this $30 million, Chalice now has a cash balance of approximately $47 million
- Chalice is up a slight 3.2 per cent on the market this morning and shares are trading for $1.13 each
Chalice Gold Mines (CHN) has completed a $30 million placement to fund the next phase of exploration at its Julimar Project.
Approximately 28,714,285 shares were issued to institutional and sophisticated investors at a price of $1.05, and Chalice actually received commitments for more than $75 million.
These shares are expected to be allocated on May 20.
Given this strong demand, Executive Chairman Tim Goyder agreed to sell 10 million of his shares, equating to 20 per cent of his holding in the company, at $1.05 per share.
This ensured that several other parties could invest.
“The company is now in an even stronger financial position and, while I have sold a small part of my holding, I am very excited by the potential of our projects and I remain fully committed to the company,” Tim commented.
Chalice is now fully-funded for its next phase of exploration at Julimar, which includes diamond drilling (DD) for high-grade nickel-copper-platinum group element (PGE) mineralisation, which is currently underway.
The company will also begin reverse circulation (RC) and diamond drilling to test the 1.6-kilometre long mineralised system and potentially deliver a maiden JORC resource.
Exploration will also continue at Chalice’s highly prospective Pyramid Hill Gold Project.
“We are of the view that Julimar has the potential to become a world-class project, and hence we are gearing up to accelerate our exploration and development activities,” Managing Director Alex Dorsch stated.
“We look forward to advancing our exciting projects and look forward to releasing more exploration results from Julimar and Pyramid Hill in the coming weeks,” he added.
With this $30 million, Chalice now has a cash balance of approximately $47 million.
Chalice is up a slight 3.2 per cent on the market and shares are trading for $1.13 each at 11:01 am AEST.
