The Chalice Mining Ltd (ASX: CHN) share price is slipping in lunchtime trade on Tuesday amid news of the company's 51%-owned South West Project.
The company has agreed to get started on activities that could see it snapping up another 19% stake in the nickel, copper, and platinum group elements project.
At the time of writing, the Chalice Mining share price is $4.63, 1.07% lower than its previous close.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.58% and the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 1.72%.
Let's take a closer look at the company's latest news.
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Chalice Mining doubles down on South West Project
The Chalice Mining share price is edging lower amid Venture Minerals Limited (ASX: VMS) announcing the ASX 200 mineral explorer has agreed to kick off the second stage of its joint venture.
The second stage could see Chalice Mining earning an additional 19% hold in the South West Project in return for $2.5 million of expenditure over two years.
That would see it with 70% ownership of the project.
Today's news comes just weeks after the company identified two new targets at the project.
In the second stage, Chalice Mining will follow up on the new targets to prepare for potential drill testing.
The project also hosts the Thor and Odin prospects. Both have been found to house copper and nickel.
Venture Minerals managing director Andrew Radonjic said Chalice Mining's commitment to the second stage is "a strong endorsement of the project".
Radonjic also noted recent nickel findings suggest $2.5 million of additional exploration "should go a long way" to exposing the project's potential.
If Chalice Mining earns the extra 19% stake, Venture Minerals can choose between contributing 30% or diluting its interest in the joint venture to 10%, reverting its interest to a 1.25% net smelter return royalty.
Chalice Mining share price
Sadly, the Chalice Mining share price is well and truly in the long-term red.
The stock is currently 51% lower than it was at the start of 2022. It has also fallen 31% over the last 12 months.
For comparison, the ASX 200 has dumped 8% year-to-date and 7% since this time last year.
