Chalice Gold Mines is set to diversify its portfolio by acquiring three private properties at the Julimar nickel-copper-platinum group elements (PGE) project in Western Australia.
The three properties cover a combined area of 945 hectares, with one covering 85 per cent of the Gonneville Intrusion which is the geological host of Chalice’s most recent PGE-nickel-copper-cobalt discovery.
Chalice considers the secure of these properties as an important Julimar project milestone and a significant de-risking step for the potential development of a future mining operation.
The properties, plus associated livestock and farming assets will be acquired via a binding purchase agreement, comprising $7 million in cash and 2.3 million ordinary fully paid Chalice shares.
The settlement is set to occur during mid-December and the agreement is on terms considered customary for agreements of this nature.
Chalice will continue a step-out and resource drilling program at the Gonneville Intrusion with three reverse circulation (RC) drills and two diamond rigs.
The drilling, which will be completed at the 1.6 kilometre to 0.8 kilometre zone will not be impacted by the transaction as it is being completed under a land access and compensation agreement.
This agreement will terminate upon the finalisation of the acquisition.
During September, Chalice unearthed three large anomalies in the northern limit of Gonneville, which supports major new geophysical targets and surveying of the land.
Earlier this year Chalice also joined an earn-in agreement with Venture Minerals for its South West nickel-copper project, which it described as a Julimar lookalike.
The South West project is set for further targeted exploration during the 2021 financial year.