The Chalice Mining Ltd (ASX: CHN) share price remains in a trading halt this afternoon. This is despite the company providing an update in regards to its latest capital raising efforts.
At the time of writing, the mineral exploration company's shares are frozen at $6.67.
Chalice launches institutional placement
The Chalice share price was halted this morning while the company prepared to make an announcement. In a statement to the ASX this afternoon, Chalice advised it is conducting a non-underwritten $100 million institutional placement.
The offer will see approximately 16.7 million new ordinary shares issued at a price of $6 apiece. This represents a 10% discount to the last closing price on 23 May.
The new shares to be issued under the placement account for roughly 4.7% of the company's existing registry (355 million shares).
Chalice noted that it reserves the right to accept placement oversubscriptions within its capacity pursuant to ASX Listing Rule 7.1.
The proceeds received will be used to fund the company's exploration activities over the next 18 months at Julimar in Western Australia. This includes advancing the Gonneville pre-feasibility study as well as undertaking reconnaissance exploration at West Yilgarn.
In addition to the $100 million, Chalice will tap into its own existing funds of $49 million to support expansion.
As such, $92 million will be allocated towards Julimar and $16 million to West Yilgarn.
Furthermore, $10 million is being set aside for corporate and $31 million for working capital and offer costs.
The new shares are expected to be allotted and issued on 30 May.
About the Chalice share price
Over the last 12 months, the Chalice share price has dropped 14%. It is also down 30% this year to date.
The company's share price reached a 52-week low of $5.17 earlier this month before rebounding higher.
On valuation metrics, Chalice commands a market capitalisation of roughly $2.37 billion, with 355.02 million shares on issue.
