04/01/2022 - 15:25

Failed explorer takes Julimar name

04/01/2022 - 15:25

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Pacific Bauxite is hoping to ride Chalice Mining’s spectacular success, but instead of the usual ‘nearology’ play, it is buying into the same commodities and taking the name of Chalice’s main project.

Failed explorer takes Julimar name
The company has pegged its future on four early-stage exploration projects in the Eastern Goldfields and Pilbara regions prospective for platinum group metals, gold, nickel and copper.

UPDATED: Pacific Bauxite is hoping to ride Chalice Mining’s spectacular success, but instead of the usual ‘nearology’ play, it is buying into the same commodities and taking the name of Chalice’s main project.

The explorer announced on New Year’s Eve it intends to change its name to Julimar Minerals and its legal status to ‘no liability’.

It also plans a $4.5 million capital raising, pursuant to a deed of company arrangement (DOCA) presented by Perth investment company Oceanic Capital, which is controlled by Euroz Hartleys Group investment adviser David Michael.

Pacific Bauxite was placed into voluntary administration in December 2019 and its shares have not traded since then.

It has pegged its future on four early-stage exploration projects in the Eastern Goldfields and Pilbara regions prospective for platinum group metals, gold, nickel and copper – which it collectively refers to as the PGE Projects.

That is the same commodity mix as Chalice’s Julimar project, which is shaping up to be a big mining development 70 kilometres east of Perth following its discovery in 2020.

Asked about the proposed new name, Pacific Bauxite director Peter Lewis said the company's legacy project - the Darling Range bauxite project - was located near Julimar forest and intersected by Julimar Road.

The Darling Range project - where Pacific Bauxite plans to expolore for other minerals including nickel, copper and platinum - is also located adjacent to Chalice's Julimar project. 

Mr Lewis said he was not aware that Chalice’s main project was known as Julimar.

“I wasn’t aware that is what Chalice called one of their deposits,” he told Business News.

That’s despite Mr Lewis citing Chalice as an inspiration for Pacific Bauxite’s new strategy.

“Their success has been a spur to us to have a go,” he said.

Pacific Bauxite went further in its ASX announcement, which said the company was “emboldened by Chalice’s exploration success” and was seeking to replicate its exploration philosophy.

Pacific Bauxite referred specifically to Chalice’s Gonneville deposit - the first discovery in the wider Julimar project, which has been widely reported as one of the most notable exploration discoveries in Australia in the past two years.

The company’s restructuring involves transactions with several associated parties.

For starters, the vendors of the four exploration projects are Glen William Goulds and St Barnabas Pty Ltd.

St Barnabas is considered to be an associate of Oceanic, as both companies are controlled by David Michael.

He is the brother of Peter Michael, who joined the Pacific Bauxite board in September last year pursuant to the DOCA.

In addition, Oceanic plans to nominate 6 million shares and six million options to Mr Goulds.

The ‘proponent’ group, comprising Oceanic, St Barnabas and Mr Goulds, will end up with a 48 per cent fully-diluted stake in the company upon completion of the planned restructuring.

The company plans to continue with its current board, comprising long-serving director Peter Lewis along with Peter Michael and John Traicos, who both joined in September last year.

Under the DOCA, Oceanic plans to advance $1.8 million to the company to pay existing creditors and meet costs.

The company also plans to raise $550,000 through an issue of convertible notes.

Pacific Bauxite plans to seek shareholder approval for the restructuring at a meeting on 31 January.

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