Chalice shares dip on Mitsubishi partnership plan
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More news: Shares in Chalice Mining have dropped nearly 5% to $1.44 in early trading on the ASX after the critical minerals explorer flagged formal talks with Japanese conglomerate Mitsubishi for a strategic partnership to develop the Gonneville nickel-copper-cobalt project in Western Australia.
They expect the ongoing pre-feasibility study for a potential $2 billion mine to be completed by mid-2025, with a final investment decision targeted for late 2026.
Chalice, Mitsubishi consider partnership for Gonneville project
The news: Critical minerals explorer Chalice Mining and Japanese conglomerate Mitsubishi are in formal talks for a strategic partnership to develop the Gonneville project in Western Australia.
The numbers: The two companies have signed a non-binding memorandum of understanding to work towards a joint arrangement and investment for the nickel-copper-cobalt project.
The ongoing pre-feasibility study for a potential $2 billion mine is expected to be completed by mid-2025, with a final investment decision targeted for late 2026.
The context: Chalice CEO Alex Dorsch said Mitsubishi’s involvement in the Gonneville project followed extensive due diligence and discussions over the past 12 months and highlighted the strategic nature and value of the project as a potential large-scale, long-life and low-carbon source of critical minerals for Western markets.
The Gonneville project hosts mix of critical minerals required for decarbonisation and urbanisation, such as palladium, platinum, nickel, copper and cobalt.
Earlier this year, Chalice cut expenditure on the project to cope with weak market conditions. The company says it is fully-funded to complete the pre-feasibility study.
The source: ASX announcement
