Chalice Mining has entered into a farm-in and joint venture agreement with Northam Resources regarding a project nearby the Julimar project in Western Australia.
Northam’s tenements are located 35km west of Chalice’s Julimar nickel-copper-platinum group elements (PGE) project, which continues to go from strength to strength.
Chalice confirmed in October it had intersected several zones of sulphide mineralisation up to 1.2km north of the current Gonneville resource – set to be the starter mine at Julimar.
Gonneville is considered one of the largest recent nickel-copper-PGE sulphide discoveries in the world, and the largest PGE discovery in Australian history.
Chalice will also contribute $1 million to Northam’s initial public offering (IPO). Northam lodged a prospectus for the IPO this week as it looks to list on the ASX.
The IPO will be priced at $0.25 per share to raise a minimum $6 million, and Northam may accept over-subscriptions to raise up to $9 million.
Subject to the completion of the IPO and admission to the ASX, Northam intends to undertake a pro-rata non-renounceable issue of options to shareholders registered on or around three months from admission to the official list.
The loyalty options would be offered for a nil issue price, on a one-for-two basis, with an exercise price of $0.28 per loyalty option. The options would expire approximately three years from the issue date.
Northam’s tenement package comprises 24 granted exploration licences totalling 1590 square kilometres extending 190km along a north-west trend. The portfolio spans the Kauring, Mount Joy, Ragged Rock and Yerecoin North project areas.
The Northam region of WA has attracted significant investor interest due to the nickel-copper-PGE potential of mafic-ultramafic complexes demonstrated by the Julimar project.
“Following the Julimar discovery, and the recent advances in geological understanding due to the Geological Survey of WA’s (GSWA) ‘Accelerated Geoscience Program’, the company is in an enviable position both strategically, ie being situated between Chalice’s and Anglo American’s tenement holdings, but also due to the geological prospectivity of these very exciting prospects,” Northam chief executive officer Craig Moulton said.
“We have extensive exploration planned across all four project areas and we are looking forward to finalising our IPO and ASX listing to move into the next phase for our company and toward exploration success.”