Chalice in focus as cashed up Canadian giant Teck Resources scours WA for deals
One of Canada’s mining giants is cashed up and being linked with beleaguered ASX nickel and copper play Chalice Mining.
Canadian diversified mining giant Teck Resources is about to receive a major influx of cash after it sold its stake in its coalmaking steel business to Glencore earlier this month for USD6.93 billion ($10 billion). And if the speculation in Perth mining circles is anything to go by, it may be about to spend some of that money in Australia.
Vancouver-based Teck, one of Canada's biggest mining companies with a $US19.5 billion market capitalisation, has an Australian office in West Perth and has been doing the rounds in the city's mining scene. Two sources told Capital Brief they believe the company could have as much as USD1 billion from the proceeds of its coal sale to play with on Australian deals.
And the sources said troubled nickel, copper and platinum group element (PGE) miner Chalice Mining and the smaller players surrounding its main deposit could make sense as possible targets. Those smaller players include ASX-listed Cauldron Energy, nickel explorer NickelX and Caspin Resources — all which have projects surrounding Chalice's beleaguered Gonneville deposit at its Julimar project.
Chalice shares are down 76% over the past year and were thrashed by more than 25% this August after its scoping study did not meet price assumptions, development costs and recovery rates. The stock closed at $1.56 on Monday, up 11.5%, but still a far cry from the levels around $10 in hit in late 2021. With a market value of around $540 million, it would be an easy deal for Teck to swallow.
