Australia-based company Chalice Mining has unveiled plans to demerge its Australian gold assets, subject to shareholder and regulatory approvals.
Chalice said the decision follows a strategic review which concluded that a demerger of the its gold projects – including the district-scale Pyramid Hill Gold Project in Victoria – would maximise shareholder value and allow the company to focus on its world-class Julimar Ni-Cu-PGE Project and the new West Yilgarn Ni-Cu-PGE Province in Western Australia.
According to the Chalice’s statement, the proposed demerger is aimed at delivering a standalone, ASX-listed gold company targeting tier-1 discoveries in Victoria and WA.
The demerged entity would hold the largest land position (>5,000km2) in the Bendigo Zone of Victoria, which hosts Kirkland Lake Gold’s world-class Fosterville Gold Mine and the historic Bendigo Goldfield.
Chalice’s Managing Director, Alex Dorsch, said the entity’s portfolio would be further enhanced by the company’s other high-potential gold projects, including the highly prospective Viking Project in WA, where Chalice is earning up to a 70% JV interest.
“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,” Mr Dorsch said.
“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-CopperPGE 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.
“This review concluded that the creation of a new gold-focused explorer would be the optimal structure to ensure that the full potential of the gold portfolio can be realised, while allowing Chalice to continue to focus on completing the resource drill-out and rapidly advancing studies at Julimar.”