Chalice sells Canada projects for $13m

West Perth-based Chalice Gold Mines has entered into a binding share purchase and royalty agreement to sell its gold assets in Quebec, Canada.

Chalice will sell its East Cadillac and Kinebik exploration projects to Canada-based Chantrell Ventures for an all scrip consideration of $C12 million ($13.1 million) plus a 1 per cent royalty.

The sale is subject to Chantrell completing a $C18 million share placement.

Chalice said the sale of its Canadian operations would allow it advance its large-scale exploration programs at its Pyramid Hill gold project in Victoria and King Leopold nickel project in the Kimberley.

As at March 31, Chalice had $22.8 million in working capital.

Chalice managing director Alex Dorsch said the deal to sell its Quebec gold projects was a great result for shareholders.

“The C$12 million in share consideration effectively reimburses Chalice for our net expenditure (after tax credits) on the two projects since inception and we are positioned well to benefit from future advancements of the combined O3 portfolio through our equity ownership and royalty interest,” he said.

The sale is expected to finalised by this quarter.

Yesterday, Panoramic Resources announced it had entered into a binding agreement to sell its Thunder Bay North platinum group metals project in Canada for $C9 million ($9.8 million).

Shares in Chalice were up 16.7 per cent to trade at 14 cents per share at 3.15pm AEST.