Chalice Gold Mines has raised $100 million to prop up its development activities at the Julimar nickel-copper-PGE (platinum group elements) project in Western Australia.
Chalice managing director Alex Dorsch said the $100 million raising was supported through a $3.75 per share placement with strong demand.
“The demand for the placement was incredibly strong, with the book covered multiple times over the desired amount,” he said.
“This is testament to the scale and quality of the discovery at Julimar, but also the potential of the region to become a new world class base and precious metals mineral province.”
Once the placement is completed, the funds will support 160,000 metres of resource definition drilling to produce a maiden mineral resource estimate for Julimar’s Gonneville intrusive.
Chalice previously uncovered widespread PGE mineralisation at Gonneville, with the company also planning to fund scoping and pre-feasibility studies by the fourth quarters of 2021 and 2022, respectively.
Dorsch said the funding would also be directed to the Hartog electromagnetic (EM) anomaly in the Julimar State Forest when approvals are granted.
“Approximately 160,000 metres of diamond and RC drilling is now planned at Gonneville to support the delivery of a maiden mineral resource in mid-2021, which will then lead into mining studies planned over the following 18 months,” he said.
“We have also earmarked significant funding for initial drill testing of the compelling multi-kilometre scale targets within the Julimar State Forest once approvals are obtained.”
Chalice will also undertake initial exploration activities at the West Yilgarn nickel-copper-PGE province, while continuing exploration at the Pyramid Hill gold project in Victoria and the Hawkstone nickel-copper-cobalt project in Western Australia.
The company will have an estimated $126 million in cash balance upon completion of the placement.