Chalice is selling subsidiary, Chalice Gold Mines, to Canada’s Chantrell Ventures Corp for $C12 million ($13.1 million).
The project includes the East Cadillac and Kinebik gold projects in Quebec, Canada, which will be sold to Chantrell in return for shares. Chalice will retain a one per cent net smelter return royalty following the sale.
Chantrell has also agreed to acquire non-core assets of Osisko Mining, with the company attempting to raise $C18 million.
Upon completion of the Osisko transaction, Chantrell will be renamed O3 Mining.
Chalice managing director Alex Dorsch said the deal provided the logical next step to build on the company’s exploration and consolidation effort in the Val-d’Or district in Quebec.
“The $C12 million in share consideration effectively reimburses Chalice for our net expenditure (after tax credits) on the two projects since inception,” he said.
“We are positioned well to benefit from future advancements of the combined O3 portfolio through our equity ownership and royalty interest.”
The sale will enable Chalice to focus on its Australian exploration opportunities at the Pyramid Hill gold project in Victoria and the King Leopold nickel project in the Kimberley.
East Cadillac was acquired by Chalice in late 2016, however, previously segmented ownership of the site hindered regional exploration being applied effectively, meaning the project is relatively unexplored.
Since acquiring the project, Chalice has completed geochemistry and geophysics field programs, targeting a multi-million ounce gold discovery- generating seven new, large-scale targets.
Chalice has drilled 35,000 metres to date on the project, testing five of these new targets resulting in three new wide-open gold discoveries.
Drilling has also expanded two existing advanced prospects along strike and down plunge.