Chalice Mining (ASX:CHN) Raises Oversubscribed SPP Size, Well-Funded to Advance Julimar 


  • Chalice Mining (ASX:CHN) has successfully closed its strongly supported share purchase plan (SPP), which was substantially oversubscribed.
  • The SPP was upsized to ~A$15 million from the original A$10 million, on the back of the outstanding response.
  • Funds are planned to be used to advance the world-class Julimar Nickel-Copper-PGE Project.

Perth-based Chalice Mining Limited (ASX:CHN) has upsized its strongly oversubscribed Share Purchase Plan (SPP) to approximately A$15 million after strong interest from existing shareholders. Owing to the robust response of shareholders for the SPP, the management decided to increase the original offer of A$10 million.

(Source: CHN ASX Update, dated 15 January 2021)

Share Purchase Plan Details

Chalice Mining received strong support from the eligible shareholders with the applications totalling approximately A$47 million at an issue price of A$3.75. The SPP offer price was same as the A$100 million institutional placement completed in early December 2020. For the SPP, the company received more than 2,300 applications.  

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Approximately 4 million new fully paid ordinary shares accounting for 1.2% of the company's ordinary shares are expected to be issued on 21 January 2021 and start trading on the ASX on 22 January 2021.

The oversubscribed nature of SPP led to a scale-back of valid applications. The eligible shareholders holding under 124 shares on the record date of 30 November 2020, will be allotted 135 shares.

Apart from that, all qualified investors, on a pro-rata basis, allotted roughly 34% of the shares they applied for. The scaling effect can be closely monitored in the below table:

(Source: CHN ASX Update, dated 15 January 2021)

Fund Utilisation

The company unveiled its equity raising program in December last year. Chalice Mining will use the funds to advance its endeavours at the Julimar project.  

The proceed raised are planned to be directed towards accelerating exploration activities and delivering the maiden Mineral Resource and mining studies for Julimar.

Julimar Project tenure over regional magnetics

(Source: CHN ASX Update, dated 4 January 2021)

Also Read: ASX nickel stocks rally as underlying commodity clinches 52-week high

Early in January 2021, Chalice Mining received a key access approval to additional exploration areas at its 100%-owned project.

The company had highlighted that it remains fully funded to continue its 6-rig resource definition drill program and reconnaissance exploration activities at Julimar. The exploratory reconnaissance work will define future drilling sites and form the basis of a second stage approval process for drill testing.

Must Read: Chalice Mining (ASX:CHN) Set To Explore Julimar State Forest

The stock of CHN traded at A$4.170 on 18 January 2021 at AEDT 11:42 AM.

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