Chalice Mining Limited (ASX: CHN) has received commitments to raise approximately A$70 million to support its development of its exciting Julimar Nickel-Copper-PGE Project in Western Australia.
Chalice received very strong inbound interest from a select group of major, long-only institutional investors (domestic and international). The company also received interest from several significant existing shareholders.
In addition to the Placement, the company has also announced a SPP of up to A$10 million at the same offer price as the Placement, with the Placement and SPP in total to raise gross proceeds of up to approximately $80 million. This SPP will allow existing eligible shareholders to participate in the capital raising.
The proceeds from the Placement will fund ongoing exploration and pre-development activities at Chalice’s 100%-owned Julimar Nickel-Copper-PGE Project, as well as ongoing exploration across its highly prospective, >8,000 sq. km West Yilgarn Province licence holding in Western Australia.
Planned activities include:
« A near-term ramp up of reconnaissance exploration drilling along the >30km long Julimar Complex, including:
« Ongoing drilling along the Hartog-Hooley-Dampier strike length, where several promising sulphide zones were recently intersected (refer to ASX Announcement on 3 May 2023); and,
« Maiden exploration drilling at the untested Baudin-Jansz-Torres targets at the northern end of the Complex (expected to commence in the coming months);
« Ongoing wide-spaced step-out drilling at Gonneville to determine the overall scale of the deposit and define extensions to the underground Mineral Resource;
« Initial drill testing of six recently defined greenfield targets within the largely unexplored West Yilgarn Ni-Cu-PGE Province (expected to commence in Q4 2023), as well as follow-up geochemical sampling, ground EM and reconnaissance mapping of prospective targets; and
« Completion of the Scoping Study and PFS for Gonneville, including the next phase of comprehensive metallurgical testwork, development studies and the submission of regulatory approvals.
Chalice is confident it is in a strong financial position for the commencement and throughout the previously announced strategic partnering process for Gonneville. The process includes a range of potential downstream, trading, end-user and mining/operating partners.