Chalice Mining said that it plans to undertake a demerger of its Pyramid Hill Gold Project and other gold assets in Australia, aimed at creating an independent publicly listed gold company that will trade on the Australian Securities Exchange (ASE).

The demerger of its tier-1 gold discoveries in Victoria and Western Australia will be subject to approvals from shareholders and regulators.

Chalice Mining’s decision comes after a strategic review of its portfolio. The review concluded that a demerger of its gold assets is the optimal structure for maximising shareholder value.

The Australian miner said that the spin-out of the gold assets will also enable it to focus on its Julimar Ni-Cu-PGE project and the new West Yilgarn Ni-Cu-PGE province in Western Australia.

According to Chalice Mining, the spin-out company will possess the largest acreage of over 5,000km2 in the Bendigo Zone in Victoria. The Bendigo Zone is host to Kirkland Lake Gold’s Fosterville Gold Mine and the historic Bendigo Goldfield.

The portfolio of the entity will be boosted further by Chalice Mining’s other high-potential gold projects such as the Viking Project in Western Australia, where the company is earning up to a stake of 70%.

Chalice Mining managing director Alex Dorsch said: “The proposed demerger provides an exciting opportunity for our shareholders to benefit from the creation of a standalone, well-funded Australian gold exploration company with a high-quality asset base in Victoria and WA.

“The board has made this decision after conducting a detailed review of our portfolio in light of the enormous success we have enjoyed over the past 18 months at our flagship Julimar Nickel-Copper-PGE Project in WA.

“The Julimar discovery has transformed the Company and unlocked a new world-class mineral province in WA, setting Chalice firmly on course to become a globally significant player in the critical ‘green metals’ space.”

Meanwhile, the company said that at its 100% owned Pyramid Hill Gold Project in Victoria, a second phase of diamond drilling was completed recently at the Karri prospect. Chalice Mining said that various primary zones of high-grade gold were encountered with more than 2.5km of strike length.