- ASX 200 minerals explorer Chalice Mining (CHN) launches an institutional placement to raise $100 million
- Under the placement, the company will issue nearly 17 million shares at $6 each, which represents a 10 per cent discount to its last closing price
- Chalice says the funds will go towards advancing exploration activities at its world-class Julimar nickel-copper PGE project over the next 18 months
- The money will also support a pre-feasibility study and associated mine development work for the Gonneville deposit
- CHN expects the trading halt will be lifted on May 25 and shares last traded at $6.67 on May 23
ASX 200 company Chalice Mining (CHN) is set to raise $100 million through an institutional placement.
The billion-dollar stock placed its shares in a trading halt this morning pending the release of an announcement regarding a capital raise.
Soon after, Chalice posted a presentation with the capital raise details and what the funds will be utilised for.
Chalice Mining will issue roughly 16.7 million shares to participating investors at an issue price of $6 per share which represents a 10 per cent discount to the last closing price of $6.67 on May 23.
The non-underwritten placement will be jointly led by Bell Potter Securities and Macquarie Capital (Australia).
Chalice directors and the joint lead managers reserve the right to accept placement
Once completed, the $100 million will be pooled with Chalice Mining’s current cash sum of $49 million to go towards exploration and studies over the next 18 months.
Specifically, the mineral exploration company plans to advance exploration at its world-class Julimar nickel-copper-platinum group element (PGE) discovery which was made in March 2020 and resulted in Chalice gaining worldwide recognition.
Moreover, the Gonneville deposit within Julimar was Australia’s first significant deposit of platinum group elements (PGEs).
Chalice Mining said the money will help fund a pre-feasibility study for Gonneville for a potential mine development.
The funds will also support a mineral resource update targeted for July this year, as well as extensive drilling and fieldwork activities across the wider Julmar complex and the West Yilgarn.
Chalice Mining believes the placement to settle on Friday, May 27, with shares to be allocated on May 30.
The company expects the trading halt will be lifted on May 25 and shares last traded at $6.67 on May 23.