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Chalice Gold Mines (ASX:CHN) - Managing Director, Alex Dorsch - The Market Herald
Managing Director, Alex Dorsch
Source: Hot Copper
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  • Chalice Mining (CHN) has closed its oversubscribed share purchase plan (SPP) and raised $15 million
  • In early December, Chalice revealed it would be undertaking a $110 million capital raise consisting of a $100 million placement and $10 million SPP
  • The company received $47 million in applications and, given this response, decided to increase the SPP to $15 million
  • Chalice will use the funds to accelerate exploration and development activities at its Julimar nickel-copper-platinum group element (PGE) project in WA
  • Chalice has ended the day 2.53 per cent in the red with shares trading at $4.24

Chalice Mining (CHN) has closed its oversubscribed share purchase plan (SPP) and raised $15 million.

In early December, Chalice revealed it would be undertaking a $110 million capital raise consisting of a $100 million placement and $10 million SPP.

Chalice received over 2300 applications for the SPP totalling $47 million.

Given this outstanding response, Chalice's Board of Directors exercised its right and increased the plan's limit to $15 million.

Roughly four million new fully-paid shares will now be issued to shareholders at $3.75 – representing a 7.6 per cent discount to the company's $4.06 closing price on November 30.

Shares are expected to be issued on January 21 and begin trading on the ASX on January 22.

Chalice will use the funds to accelerate exploration and development activities at its Julimar nickel-copper-platinum group element (PGE) project in WA.

"I would like to thank our shareholders for their overwhelming support. The demand for the SPP was incredibly strong, which is testament not only to the scale and quality of the discovery at Julimar, but also its potential to become a new world-class mineral province in Western Australia," Managing Director Alex Dorsch said.

"In light of the strong response, the board made the decision to upsize the SPP by 50 per cent after taking into consideration our capital requirements," he said.

"The combined proceeds of the recent placement and this SPP will ensure Chalice remains financially strong well into the future, with the ability to rapidly advance Julimar to the feasibility stage," he added.

Chalice has ended the day 2.53 per cent in the red, with shares trading at $4.24 in a $1.47 billion market cap.

CHN by the numbers
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