Chalice raises another $80m for Gonneville

Chalice Mining will top up its coffers by $70 million courtesy of a private placement to institutional investors.

About 6.9 million new Chalice shares will be issued at $7.30 each, representing a 5.7 per cent discount on the junior’s five-day volume-weighted average price under the capital raising.

It’s understood the $70 million placement was heavily oversubscribed with shares mostly allocated to two parties.

The raising means Chalice is funded for the next two years with about $150 million in the bank to support ongoing regional exploration drilling across Julimar and eventual scoping and pre-feasibility studies.

A further $10 million worth of Chalice stock will be up for grabs for existing shareholders via a follow up share purchase plan at the same price.

It comes as Chalice undertakes a formal process to find a strategic partner to develop Julimar.

Chief executive Alex Dorsch has indicated Chalice is open to a broad range of transactions with more than one party to pin down a development pathway for the project.

In March, the company tabled a 50 per cent increase to its Gonneville mineral resource, touting the deposit as the second largest undeveloped nickel sulphide resource in Australia.

Chalice is yet to provide an update on when a scoping study for the project is to be expected.

Chalice Mining shares were down 2.7 per cent to trade at $7.53 in a $2.83 billion market cap.