Chalice Gold Mines launches equity raising, hires two brokers

Sarah Thompson, Anthony Macdonald and Tim Boyd

May 12, 2020 – 8.32am

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Precious metals explorer Chalice Gold Mines was in the market on Tuesday, seeking to raise $30 million.

Bell Potter Securities and Euroz Securities were offering new shares at $1.05 each, which reflected a 4.1 per cent discount to the last close and a 12 per cent discount to the 10-day volume weighted average price.

Julimar was staked in early 2018 as part of Chalice’s global search for high-potential nickel sulphide exploration opportunities. Janine Hall/perthweatherlive.com

The $300 million Chalice will use the proceeds to fund accelerated expansion at its 100 per cent-owned Julimar project, located 70 kilometres north-east of Perth in Western Australia.

"PGE mineralisation has been confirmed in 12 RC holes drilled to date [at the Julimar project] over the intrusive and disseminated sulphides have been identified up to circa 450 metres below surface," a term sheet sent to fund managers said.

Bells and Euroz were calling for bids to be submitted by 6.00pm (Sydney time) for Australia and Asia-based fund managers and 12.00pm (Sydney time) on Tuesday for investors in the northern hemisphere.