Chalice Mining has received firm commitments for a $100 million institutional placement which will fund further exploration at the Julimar nickel-copper-platinum group elements (PGEs) project in Western Australia.
Comprising approximately 16.7 million ordinary shares, the placement cost of $6 per share represented a 10 per cent discount from Chalice’s closing share price of $6.67 on May 23.
Chalice said it is now fully funded for the next 18 months and will have $141 million cash in hand following the completion of the placement.
Exploration, step-out and infill drilling will be a key focus at Gonneville, as Chalice targets an updated mineral resource estimate in early July 2022. As the company looks to further understand the highly fancied Gonneville, there will be particular around the deposit’s underground potential.
Chalice said the completion of a Gonneville scoping study and ensuing pre-feasibility study would also be particular priorities.
“(The) raising provides Chalice with approximately 18 months of funding for continued exploration at Julimar and across the West Yilgarn, as well as substantially advancing the pre-feasibility study for the Gonneville ‘starter mine’,” Chalice said in a statement.
The Gonneville studies will look to further de-risk the project before regulatory approvals processes can then begin. Chalice will bring on top-tier consultants and a designated project director to ensure Gonneville is progressed on schedule.
Chalice said exploration at other Julimar targets would also occur.
“(We aim to) complete initial low-impact exploration drilling along the (more than) 30km-long Julimar complex, across the Hartog, Dampier, Baudin, Jansz, Torres and Flinders targets,” the company said.
“(We aim to also) conduct reconnaissance exploration, including ground EM (electromagnetic), soil sampling and initial drilling across the (larger than) 8000km2 West Yilgarn portfolio, including Julimar (regional), Barrabarra, South West, Narryer and Holt Rock.”
The placement is expected to settle on May 27, with placement shares to be issued on May 30.
On May 19, the company announced it had commenced a much-anticipated drilling program at its Hartog-Dampier targets after receiving the necessary approvals.
Chalice was granted a permit to explore further into the forest in December but encountered five community appeals to carry out the activities, including from the Avon and Hills Mining Awareness Group, and the Shire of Toodyay.