The issue price of $6 represents a 10% discount to yesterday’s close of $6.67.

The company will issue roughly 16.7 million shares, equating to about 4.7% of existing shares on issue.

The placement, which is being managed by Bell Potter Securities and Macquarie Capital, is not underwritten.

Chalice had $49 million cash at the end of April.

The company owns the globally significant Julimar project, north of Perth, which is Australia’s largest palladium discovery.

The project’s Gonneville deposit has a resource of 330 million tonnes at 0.94 grams per tonne palladium, platinum and gold (3E), 0.16% nickel, 0.1% copper and 0.016% cobalt, or 0.58% nickel equivalent containing 10 million ounces of 3E, 530,000 tonnes of nickel, 330,000t of copper and 53,000t of cobalt.

A resource update is due in early July.

About $48 million will be used on studies and pre-development works for a “starter mine” at Gonneville over the next 18 months.

Chalice will use $33 million for exploration and resource drilling at Gonneville and $11 million for further drilling at the Julimar Complex.

Only 2km of the 30km-Julimar Complex has been drilled to date.

Chalice shares hit a 52-week low of $5.17 earlier this month but jumped last week when it was granted approval to drill the Hartog target to the north of Gonneville in the Julimar State Forest.

Chalice holds 8000sq.km of ground in the broader West Yilgarn nickel-copper-PGE province, which is unexplored.

The company plans to use $16 million for regional exploration.