Chalice to raise $30m

Chalice Gold Mines has taken advantage of a strong rally in its share price to kick off a $30 million capital raising through brokers Bell Potter Securities and Euroz Securities.

The offer is priced at $1.05 per share, according to a deal sheet issued by the joint lead managers.

That represents a small 4.1 per cent discount to the stock’s last closing price before the company called a trading halt.

The stock has rocketed from about 20 cents per share in March, on the back of its Julimar nickel, copper and palladium discovery, located just 70 kilometres east of Perth.

The share price gains have seen the company’s market cap increase to $300 million, before the latest raising.

The proceeds from the share placement will mainly be used to fund drilling at Julimar, and for working capital.

Led by chairman Tim Goyder, the company also owns the Pyramid Hill gold project in Victoria, where it is undertaking early-stage exploration drilling.

Since listing on the ASX in 2006, the company has generated $110 million in after-tax proceeds from asset sales and returned $36 million to shareholders.

Prior to this raising, it had $25 million in working capital and investments.