ASX aspirant wins Chalice backing

Chalice Mining has backed neighbouring explorer and ASX hopeful Northam Resources for $1 million as part of company’s $6 million initial public offer.

Northam has lodged a prospectus for the IPO - which is offering new shares in the junior at 25 cents per share - seeking to raise between $6 million and $9 million for its exploration projects in Western Australia.

Market darling Chalice Mining has agreed to subscribe for $1 million under the IPO, with the pair also entering a farm-in and joint venture agreement regarding one of Northam’s projects.

Northam’s exploration portfolio is grouped into four project areas across Kauring, Mount Joy, Ragged Rock and Yerecoin North.

The company estimates Chalice’s Julimar project is approximately 35 kilometres west of its tenements.

Proceeds from the raising will go towards advancing exploration at the sites.

Northam chief executive Craig Moulton said the locale of its tenement holdings put the company in an enviable position.

“Following the Julimar discovery, and the recent advances in geological understanding due to the Geological Survey of WA’s ‘Accelerated Geoscience Program’, the company is in an enviable position both strategically, i.e. being situated between Chalice’s and Anglo American’s tenement holdings, but also due to the geological prospectivity of these very exciting prospects,” he said.

“We have extensive exploration planned across all four project areas and we are looking forward to finalizing our IPO and ASX listing to move into the next phase for our company and toward exploration success.”

Northam is expected make its ASX debut in mid-December.