Chalice Mining Limited (ASX:CHN) announced the spin-off of Pyramid Hill, Viking and Mt Jackson gold projects on September 30, 2021. Pursuant to the terms of the spin-off, Chalice Mining Limited shall spin-out Pyramid Hill, Viking and Mt Jackson gold projects into a new standalone, gold-focused ASX-listed exploration company called Falcon Metals Ltd (“Falcon”; proposed ASX code: FAL). Eligible Chalice Mining Limited shareholders are expected to receive 1 ordinary Falcon share for every 3.034 ordinary Chalice Mining Limited shares via an in-specie distribution. As part of the concurrent IPO, Falcon Metals Ltd is to raise a minimum of $15 million and up $30 million under a pro-rata priority offer to Chalice Mining Limited shareholders. As part of the transaction, a highly qualified Board and Management secured to lead Falcon Metals Ltd, including one of most decorated explorers in Australia, Mark Bennett, who has been appointed non-executive chair, whereas Tim Markwell will be appointed as Managing Director. Chalice Mining Limited's Managing Director & Chief Executive Officer, Alex Dorsch will join the board of Falcon Metals Ltd as a Non-executive Director to ensure a smooth transition of the projects into the new standalone entity. These appointments will commence upon the receipt of conditional approval from the ASX for admission of Falcon Metals Ltd to the official list of the ASX. The transaction is subject to final board and shareholders' approval of Chalice Mining Limited and regulatory approval. As of September 30, 2021, the notice of meeting and prospectus are currently being prepared. As of December 7, 2021, Falcon IPO received strong support from Chalice shareholders and new investors, with the Offers to raise up to a maximum of AUD 30 million closing oversubscribed. Subject to receiving ASX approval and satisfaction of other remaining conditions, Falcon Metals Limited is expected to commence trading on December 22, 2021 and will be removed from the S&P/ASX 200 effective prior to the open of trading on December 23, 2021. The demerger is expected to complete before the end of 2021. Chalice Mining Limited has appointed Bell Potter Securities Limited as financial advisor and HWL Ebsworth Lawyers as legal advisor. Computershare Investor Services Pty Limited acted as registrar to Falcon Metals Limited and Chalice Mining Limited.

Chalice Mining Limited (ASX:CHN) completed the acquisition of Falcon Metals Limited on December 15, 2021. The in-specie distribution of Falcon Shares to eligible Chalice shareholders was completed on December 15, 2021. Falcon is expected to be admitted to the official list of ASX on December 20, 2021. Falcon shares are expected to commence trading on the ASX on December 22, 2021.