PERTH (miningweekly.com) – Dual-listed gold miner Chalice Gold Mines has thrown its support behind Australian junior Ausgold, agreeing to subscribe for A$1-million in shares.
Chalice on Tuesday reported that it would acquire 40-million shares in the ASX-listed Ausgold, at a price of 2.5c a share, with the funds raised through the placement expected to finance ongoing exploration work at the Katanning gold project, in Western Australia.
Meanwhile, Chalice has also agreed to divest of its Dumbleyung gold project, adjacent to the Kattaning project in Western Australia, in exchange for 15-million shares, and 10-million options exercisable at 3.5c each, in Ausgold.
The Dumbleyung project is subject to Ausgold shareholder approval.
Ausgold CEO Matthew Greentree said on Tuesday that the junior company was pleased to execute the transaction with Chalice, adding that the placement would be used to fund exploration work at Katanning.
Greentree said that Ausgold was also excited by the potential of the Dumbleyung tenements.
“This builds on Ausgold’s dominant ground holding which now covers 4 031 km2 in Western Australia’s most under-explored greenstone belt.”
Edited by: Creamer Media Reporter
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