Monsters of Rock: Miners recover led by lithium plays, Chalice launches gold demerger
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The iron ore price nosedived overnight but it did little to blunt the performance of the diversified miners, who rode positive sentiment across the market.
The Materials index was up 1.44% to lead the ASX 200.
Lithium miners were the standouts, following news in the global market that Tesla had signed a three-year deal to hoover up battery grade lithium hydroxide from China’s Ganfeng.
Chinese media have also reported Tesla plans to buy some 45GWh worth of lithium iron phosphate batteries from CATL, as Elon Musk’s auto maker looks to ramp up production.
On the ASX today Orocobre (ASX:ORE) was the top large cap, posting a 6.71% gain ahead of Pilbara Minerals (ASX:PLS) (5.43%), MinRes (ASX:MIN) (3.91%), Fortescue (ASX:FMG) (3.08%) and Lynas (ASX:LYC) (2.53%).
It was Vulcan’s first day of gains since a short seller report last week that knocked more than 20% off the value of the company across Friday and Monday, and coincided with a supportive note from Canaccord Genuity.
ASX 200 battery metals explorer Chalice Mining (ASX:CHN) has set a high price for the IPO of its Victorian gold assets.
The $2.3 billion rated market darling is hunting between $15 and $30 mil at 50c a share to pump into Falcon Mining, which will own the Pyramid Hill gold project in Victoria’s 60Moz Bendigo gold fields and the Viking project near Norseman in WA.
Pyramid Hill covers more than 5000km2 of ground around Bendigo including the Muckleford, Mt William and Percydale areas, which are considered prospective for the 8.5g/t plus style gold veins typically found in the Bendigo region, which houses the 500,000ozpa-plus Fosterville gold mine.
The project hosts walk up targets like the Karri prospect, about 20km west of Catalyst Metals (ASX:CYM) Four Eagles discovery, where shallow gold intersections have been identified over 4km of strike with a top hit of up to 32.1g/t of gold.
The IPO will run parallel to a demerger process, which will see an in-specie distribution of 1 Falcon share for every three shares held by Chalice shareholders.
Chalice investors are also eligible to subscribe for 1 Falcon share for every 5.882 Chalice shares they own in the IPO.
The company, which is expected to begin trading on the ASX by December 22, will have a market cap of between $73.5 and $88.5 million on listing.