Why did the Chalice Mining share price leap 6% this week?

The ASX mineral explorer released its June quarter report this week.

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Key points

  • The Chalice Mining share price finished the week more than 6% higher after releasing its quarterly report on Wednesday
  • The company provided operational highlights for its Kings and Julimar projects in Western Australia's emerging West Yilgarn Ni-Cu-PGE Province
  • An institutional placement and share purchase plan conducted during the June quarter gave Chalice funding for 24 months 

The Chalice Mining Ltd (ASX: CHN) share price ascended 6.44% to finish the week at $5.96.

Chalice Mining is an ASX mineral explorer and developer of precious and base metals.

It has interests in several mines in Western Australia and the Northern Territory.

The miner released its quarterly activities and cash flow report on Wednesday.

Let's dig into the details.

Chalice Mining share price climbs on positive report

Here are the key financial metrics for the quarter:

  • $13.23 million net cash spent on operating activities, such as exploration
  • $629 million net cash spent on investing activities, such as plant and equipment
  • $74 million net cash from financing activities, including an institutional placement and share purchase plan
  • Cash and cash equivalents on hand at the end of the quarter $145.2 million
  • 10.98 quarters of estimated funding available.

Chalice Mining also provided operational highlights for its Kings and Julimar projects, which are both located within Western Australia's emerging West Yilgarn Ni-Cu-PGE Province, north-east of Perth.

Kings Nickel-Copper-PGE Exploration Project

Within the Kings Project is the Gonneville deposit, where Chalice is advancing development studies and regulatory approvals for a potential mine there.

It is conducting targeted exploration activities to assess the overall scale of the mineral system.

Step-out drilling has confirmed high-grade sulphide zones that "continue for a considerable distance" beyond the current mineral resource estimate.

Open-pit development cases have been selected for the ongoing scoping study, which should be completed in the third quarter of 2023. Pre-feasibility study work has also commenced.

Chalice is seeking a strategic partner to bring technical, financial and/or marketing capabilities.

The company says it has received strong interest from a range of companies since April.

Julimar Nickel-Copper-PGE Exploration Project

In the second half of 2023, Chalice Mining intends to commence drill testing of more than 10 new greenfield targets.

Exploration activity will be ramped up in late Q3 2023, including initial drilling at Baudin, Jansz and Torres targets once approvals are received.

Chalice has further expanded its licence holding through an earn-in of up to 70% in a 1,600 square-kilometre holding belonging to Northam Resources, located about 35km east of the Gonneville Project.

What else happened during the quarter?

Chalice raised $76 million through an institutional placement and share purchase plan to fund 24 months of exploration and development activities.

Both capital raisings involved a share price offer of $7.30.

Chalice Mining share price snapshot

Chalice Mining shares are down 4.9% in the year to date and up 23.3% over the past 12 months.

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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