The three properties cover a combined area of ~945 hectares and one property covers ~85% of the Gonneville Intrusion, the geological host to Chalice’s recent major PGE-Ni-Cu-Co discovery
Chalice Gold Mines Limited (“Chalice” or “the Company”, ASX: CHN | OTCQB: CGMLF) is pleased to announce that it has entered into a binding agreement to acquire three key private properties at its 100%-owned Julimar Nickel-Copper-PGE Project, located ~70km north-east of Perth in Western Australia.
The three properties cover a combined area of ~945 hectares and one property covers ~85% of the Gonneville Intrusion, the geological host to Chalice’s recent major PGE-Ni-Cu-Co discovery. Securing the title to these properties is considered to be an important milestone for the Project and a significant de-risking step for the potential development of a future mining operation.
The properties, plus associated livestock and farming assets, are to be acquired pursuant to the binding purchase agreement. The consideration comprises $7 million in cash and 2,303,010 ordinary fully- paid Chalice shares. The agreement is on terms considered customary for agreements of this nature, and settlement is not subject to any material conditions precedent. Settlement is due to occur in mid-December.
Five rigs (three Reverse Circulation (“RC”) and two diamond) are continuing a step-out and resource definition drill program at the ~1.6km x >0.8km Gonneville Intrusion. The transaction does not affect ongoing drilling operations, as drilling has been undertaken under a land access and compensation agreement (which will terminate upon settlement of the acquisition).
Source: Company Press Release