The Chalice Mining Ltd (ASX: CHN) share price is higher today as the company announced it had expanded its mining operations.
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The Chalice Mining Ltd (ASX: CHN) share price is higher today. That’s because the company announced it had acquired four more properties at one of its mining locations.
At the time of writing, shares in the miner were selling for $6.54, up 2.03%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.33% higher.
Let’s take a closer look at today’s announcement and how it might affect the Chalice share price.
Why the Chalice share price is up
In a statement to the ASX, Chalice Mining announced it was expanding the size of its 100%-owned Julimar Nickel-Copper-PGE Project in Western Australia with the purchase of four private properties in the area.
Totalling roughly 723 hectares in size, the properties cost the company $11.25 million in cash and just over 1 million fully paid ordinary shares. Chalice said the deal was not subject to “any material conditions precedent”.
Investors are responding positively to the news, judging by today’s Chalice share price rise.
The company has now acquired just over 1,600 hectares of private land at the southern end of its Julimar Project.
Julimar Mining Project
The Chalice share price shot up in November 2020, when the company announced “significant new results” out of the Julimar Project. Nickel, copper, and platinum group elements (PGE) were all discovered at the location.
The company is hoping today’s acquisitions should lead to even greater mineralisation discoveries.
According to the website Trading Economics, nickel is currently trading for US$16,318.75 a tonne, copper is US$4.18 a pound, while platinum is selling for US$1,203 per troy ounce. Respectively, these elements are down 1.42%, up 18.78%, and up 12.86% since the beginning of this year.
Chalice share price snapshot
Over the past 12 months, the Chalice share price has increased a whopping 431.7%. In fact, just in 2021, the company’s value has appreciated 52.1%. Today’s price is only slightly down from its recently achieved 52-week high of $6.66.
Chalice Mining has a market capitalisation of $2.2 billion.
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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.