Chalice Mining spinoff Falcon Metals (ASX: FAL) has successfully launched on the ASX following a ‘strongly supported’ IPO that saw the company raise $30 million before costs.
The gold-focused breakaway issued 60 million new shares at $0.50 each, adding to the 117 million shares that were distributed to existing Chalice shareholders upon demerger. This resulted in an ‘indicative’ launch market cap of $88.5 million.
The company is guided by a decorated board and management team, who bring experience from a range of ‘company making’ discoveries including Julimar, Nova-Bollinger, Thunderbox, and Waterloo. This includes company Chairman Dr Mark Bennett, Managing Director Tim Markwell, and Chalice MD & CEO Alex Dorsch who will contribute as a Non-Executive Director.
Addressing the news, Mr Markwell said: “Falcon Metals is excited by the opportunity to further explore the gold projects spun out by Chalice. All of them are in areas considered highly prospective for gold discoveries, with Pyramid Hill particularly noteworthy due to its location in the Bendigo goldfield and proximity to Fosterville, while Viking and Mount Jackson are also very promising. We believe our experienced team can help us further develop these assets and unlock their potential value.
On behalf of the Board, I wish to thank all of those involved in the successful de-merger from Chalice and successful IPO, most notably our lead manager Bell Potter. We welcome all shareholders onto our register and look forward to a bright future ahead.”
Falcon controls one of the largest ground holdings in the Bendigo gold region, covering over 5,000km² of tenure. This includes the large Pyramid Hill Project located north of Fosterville, which will be the focus of early exploration.
Falcon controls one of the largest ground holdings in the Bendigo gold region, covering over 5,000km² of tenure
The region hosts a series of world-class gold projects including the 8+ million ounce Fosterville Gold Mine, and the historic 22+ million ounce Bendigo Goldfield, and is considered prospective for high-grade greenfield gold discoveries.
Over in Western Australia, the Viking project sits on a large zone of ‘high-grade’ supergene gold discovered a decade ago by by AngloGold, while the under-explored Mount Jackson Project delivers potential in the form of a large untested gold-in-soil anomaly within the Southern Cross belt.
All three projects are set to benefit from systematic exploration funded by the raise, with plans underway for diamond and aircore drilling at Pyramid Hill in January 2022, followed by an RC campaign at Viking in Q2 and aircore work at Mount Jackson later in 2022.
Images: Falcon Metals Ltd