Why is the Chalice Mining (ASX:CHN) share price surging today?

Here’s what’s been going on with the Chalice share price lately.
The post Why is the Chalice Mining (ASX:CHN) share price surging today? appeared first on The Motley Fool Australia. –

The Chalice Mining Ltd (ASX: CHN) share price is topping off a rocky week with a 3% gain, despite no news having come from the company.

However, its recent volatility might have something to do with the company’s spin-off, Falcon Metals Ltd (ASX: FAL).

At the time of writing, the Chalice Mining share price is $8.83, 3.15% higher than its previous close.

Let’s take a closer look at the latest news of the former gold explorer turned mineral explorer.

What’s driving the Chalice Mining share price lately?

The Chalice Mining’s stock is once again on the move today. It follows a 1.5% gain on Tuesday and a 1.1% slip on Wednesday.

The small rollercoaster came amid the float of the company’s spin-off, Falcon Metals, which listed with what used to be Chalice Mining’s gold assets.

Today’s gain may well be the market’s way of showing relief the company’s hard work is over.

The company spun out its gold assets to focus on its nickel, copper, and platinum group elements projects. The resulting company, Falcon Metals, debuted on the market on Wednesday.

Its share price plummeted 28% after its initial public offering (IPO), which saw Chalice Mining shareholders taking home 1 Falcon share for every 3.0341 Chalice shares owned.

It also offered $30 million worth of new shares, priced at 50 cents apiece, with Chalice shareholders having priority over the general public.

Fortunately, the Falcon Metals share price recovered 19% yesterday and is currently up 5.3% today. Right now, it is trading at 39.5 cents, still 21% lower than its offer price.

All the excitement might have put pressure on Chalice Mining’s stock this week. Particularly, since it tumbled 4.2% when Falcon Metals was officially demerged on 15 December.

However, the Chalice Mining share price is still 105% higher than it was at the start of 2021. Though, it is 8% lower than it was this time last month.

The post Why is the Chalice Mining (ASX:CHN) share price surging today? appeared first on The Motley Fool Australia.

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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.

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More reading

22% recovery: Falcon Metals (ASX:FAL) share price regains on second day of trade

Falcon Metals (ASX:FAL) share price nosedives 28% on IPO

Why is the Chalice Mining (ASX:CHN) share price falling today?

5 things to watch on the ASX 200 on Wednesday

Bell Potter names the best ASX mining shares to buy in 2022

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.

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