Chalice Mining in market for another $100m to grow Gonneville discovery near Toodyay

Headshot of Stuart McKinnon
Stuart McKinnonThe West Australian
CommentsComments
Chalice Mining Managing Director Alex Dorsch.
Camera IconChalice Mining Managing Director Alex Dorsch. Credit: Trevor Collens/The West Australian

Chalice Mining is understood to be rattling the tin for $100 million in top-up cash as it looks to expand its exploration activities to the north of its celebrated Gonneville polymetallic discovery near Toodyay.

Shares in the Alex Dorsch-led company have been placed in a trading halt with Chalice understood to have tapped Macquarie Capital and Bell Potter to lead manage its placement.

The raising is believed to be priced at $6 a share representing an 11 per cent discount to its last traded price of $6.67.

It comes after Chalice was given the long-awaited environmental green light to drill in the Julimar State Forest as it seeks to expand its Gonneville find.

The forest north of Toodyay represents 29,000ha of remnant native vegetation in the Avon Valley catchment.

The company is upbeat that the palladium, platinum, gold, nickel, copper and cobalt mineralisation it has found at Gonneville extends along the 30km-plus Julimar complex to the north under the State Forest.

Chalice has said drilling in the area would not involve any mechanised clearing of vegetation and strict environmental management measures would be followed.

The expanded drilling campaign comes after Chalice in November unveiled a monster 330 million-tonne maiden resource for Gonneville.

The company said last week it had about $54.5m in cash reserves.

Get the latest news from thewest.com.au in your inbox.

Sign up for our emails