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.

| More on:
Construction workers having a chat amongst themselves.

Image source: Getty Images

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.

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 over 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 January 13th 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.

More on Resources Shares

a woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face.

Here’s why the Ramelius (ASX:RMS) share price tumbled 8% to 4-month lows today

Key points The Ramelius share price sank 8% today Investors did not warm to the company’s quarterly results Gold production …

Read more »

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today
Resources Shares

Did this just cause the American Rare Earths (ASX:ARR) share price to surge 30% higher?

Key points American Rare Earths’ shares are rocketing higher today A letter to shareholders may have given its shares a …

Read more »

ASX miners crash opportunity broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buy
Broker Notes

Time to sell? Macquarie just downgraded these 3 ASX shares from buys

Key points Macquarie comes out with a list of downgrades today The 3 ASX shares are all concentrated in resources …

Read more »

mining worker making excited fists and looking excited
Resources Shares

Is the BHP (ASX:BHP) share price a buy in all of this volatility?

Key points The BHP share price has been outperforming the ASX 200 in 2022 Iron ore continues to rally higher, …

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches his Neometals shares rising on his laptop
Resources Shares

Why is the BHP (ASX:BHP) share price leaping ahead today?

The S&P/ASX 200 Index (ASX: XJO) has unfortunately slipped into negative territory so far this Thursday, after an initially strong market …

Read more »

Man open mouthed looking shocked while holding betting slip
Broker Notes

Broker tips Fortescue (ASX:FMG) share price to sink 30% and warns of dividend cuts

The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher today after a rise in the iron ore …

Read more »

Business man marking Sell on board and underlining it
Broker Notes

Mineral Resources (ASX:MIN) share price falls 5% following brokerage downgrade

Key points The Mineral Resources share price is coming under more pressure after JPMorgan downgraded it to underweight or sell …

Read more »

Female worker sitting desk with head in hand and looking fed up
Resources Shares

Own Rio Tinto (ASX:RIO) shares? What options does the company have in response to the Serbian government’s decision

Key Points Rio Tinto shares withstand market pressure Management looking at legal options to overturn the Serbian Government’s decision Rio …

Read more »