Insights

Here’s why the Chalice Mining (ASX:CHN) share price is in the spotlight today

Here’s the latest on the spin out of the company’s gold assets.
The post Here’s why the Chalice Mining (ASX:CHN) share price is in the spotlight today appeared first on The Motley Fool Australia. –

The Chalice Mining Ltd (ASX: CHN) share price is struggling today, despite no price-sensitive news having been released by the company.

However, it did provide the market with a non-price sensitive update on the demerger of its Australian gold assets.

At the time of writing, the Chalice Mining share price is $9.06, 0.06% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.65%.

Let’s take a closer look at the latest news out of Chalice Mining.

Chalice Mining share price slips despite demerger update

The Chalice Mining share price is sliding amid news that the company’s spin-out, Falcon Metals Ltd’s initial public offering (IPO) has closed oversubscribed.

The IPO saw $30 million raised. It comprised of a priority offer for the parent company’s shareholders and a shortfall offer.

The offers saw 60 million Falcon shares sold for 50 cents apiece.

The parent company will also be issuing Falcon shares through a pro-rata in-specie distribution.

Shareholders will receive 1 Falcon share for every 3.034 (approximately) Chalice Mining shares held on 13 December.

At the offer price, assuming no additional shares are issued and no options exercised, the company is expected to have a market capitalisation of around $88.5 million upon listing.

Chalice Mining noted that the oversubscribed offer will see Falcon in a strong cash position when it floats on the ASX.

Falcon is now expected to float on 22 December under the ticker FAL.

It will hold the Pyramid Hill Project, Viking Project, and the Mount Jackson Project.

Its parent company today stated it will have a “unique platform to make a tier 1 gold discovery in Victoria and Western Australia”, with drilling activities expected to begin at Pyramid Hill in early 2022.

The demerger’s expected to help Chalice Mining focus on its Julimar Nickel-Copper-PGE Project.

Right now, the Chalice Mining share price is 110% higher than it was at the start of 2021. It has also gained 4.1% since this time last month.

The post Here’s why the Chalice Mining (ASX:CHN) share price is in the spotlight today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Chalice Mining right now?

Before you consider Chalice Mining, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Chalice Mining wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Venture Minerals (ASX:VMS) share price is venturing 10% higher today

Why API, Chalice Mining, GUD, and Worley shares are charging higher

Here’s why the Chalice Mining (ASX:CHN) share price is glowing today

These were the 5 best performing ASX shares in November

Why Chalice Mining, CBA, Nufarm, and SEEK shares are sinking

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!