- Chalice Gold Mines (CHN) is looking to raise up to $100 million through an institutional placement and share purchase plan
- The capital raise will issue a total of 26.7 million new shares at $3.75 — representing a 7.64 per cent discount to the last closing price on November 30
- Chalice will use the money to accelerate exploration within the renowned Julimar project in Western Australia
- The billion-dollar company will conduct extensive drilling to deliver a maiden mineral resource for the Gonneville discovery in mid-2021
- The money raised will support the miner's existing cash balance of around $26 million
- Chalice's shares last traded at $4.06 on Monday, November 30
Chalice Gold Mines (CHN) has announced it is looking to raise up to $100 million through an institutional placement and share purchase plan.
The billion dollar company entered a trading halt this morning and said it would remain in the halt until December 3. As it turns out, investors didn't have to wait to find out the details of CHN's raise.
All up, Chalice intends to raise $100 million — $90 million under a placement and the remaining $10 million under a share purchase plan.
Combined, the offer will issue around 26.7 million new shares at $3.75 per share. The issue price represents a 7.64 per cent discount to the last closing price on Monday, November 30 and a 3.9 per cent discount to the five-day volume-weighted average price.
Chalice will use the money to accelerate exploration within the renowned Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia.
Broken down, $41 million will go towards 160,000 metres of diamond and reverse circulation (RC) resource definition drilling at the Gonneville discovery. This drilling is aimed at delivering a maiden mineral resource in mid-2021.
An additional $10 million will fund scoping and pre-feasibility studies, $22 million will fund drilling in the Julimar State Forest, $20 million on exploration at other projects and the remaining $7 million will support corporate, transaction and working capital costs.
The money raised will support the miner's existing cash balance of around $26 million as of November 30.
This work aligns with Chalice's strategy to assess Gonneville's potential to be a commercial mining operation, make a significant new discovery, building its team, strengthen its financial position and continue building trust with key stakeholders.
Chalice's shares last traded at $4.06 on Monday, November 30.