Exploration company targeting copper and base metals with project located in Tier 1 area of Mount Isa

Live Chalkos Metals Ltd ASX: CKM

Chalkos Metals Ltd IPO | ASX: CKM

Fixed Priced IPOType of Offer
01 Jun 22Offer Open
01 Jul 22Pay By
$0.20Price
Up to $8 millionSize of Offer
$2,000 Minimum Investment
Viridian CapitalLead Manager

Key Investment Highlights

Introduction

Chalkos Metals Ltd (ASX: CKM) is an Australian resources exploration company targeting copper and base metals at its wholly owned Mount Isa Project located adjacent to Glencore’s Mount Isa mine in Queensland. The Project currently consists of 7 identified prospects with 13 targets for mineralisation.  The company brings a new approach to mining by directly and decisively testing the mineralisation occurrences with geophysical datasets and an atypical hybrid IOCG-orogenic mineralisation model as guidance.

The Company has raised ~$1.6 million in seed funding which it used to complete a shallow induced polarisation survey across two targets at the Frida prospect, collate previous exploration results and fund a 7 hole diamond drilling program that commenced in February 2022 to test 3 of 13 identified priority targets at the Mount Isa Project. Drilling is expected to be completed by Q3 CY2022, with initial assay results anticipated to be available from Q4 CY2022, post the Company’s IPO.

Terms of the Offer

Chalkos Metals Limited is looking to undertake an IPO on ASX to raise between $6 million and $8 million via the issue of 30 million and 40 million shares under the Offer at an offer price of $0.20.  The company will have an indicative market capitalisation of approximately $16.3 million on completion of the offer at the maximum raise amount. 

Mount Isa Project

The Mount Isa Project comprises six granted Exploration Permits for Minerals (EPM) along with two Exploration Permits for Minerals Applications (EPMA), covering a combined area of 110 sub-blocks (approximately 345 km2) in the Mount Isa district of northwest Queensland.

The Mount Isa Project is centred approximately 12km west of the city of Mount Isa and approximately 900km west of the port facilities at Townsville. The district has a long history of copper production, and Mount Isa is the district's major regional administrative, commercial and mining centre. In addition, the town is an adequate base from which to conduct exploration activities (air service, transport, accommodation, supplies etc.).

The world-class Glencore’s Mount Isa Copper deposit lies immediately to the east of the Mount Isa Fault system, the same fault system that bounds the Chalkos Metals Mount Isa Project. However, the Chalkos’ Mount Isa copper occurrences are distinctly different from the nearby epigenetic replacement style sediment-hosted massive sulphide (SHMS) deposit.

Work by Chalkos Metals to date has indicted that there is substantial copper mineralisation west of the Mount Isa Fault that does not fit the SHMS deposit model, and previous exploration techniques and assumptions may have overlooked much of the potential of the area.

The Chalkos Metals Mount Isa Project hosts many outcropping copper mineralisation occurrences, suggestive of large-scale migration of copper-bearing fluids through the rock mass. The copper occurrences are in a range of host rock types, most notably on intrusive pegmatite contacts and within vein stockworks in dolerite.

The Company commenced a 7 hole diamond drilling program in February 2022 to test 3 of the 13 identified priority targets. Drilling is expected to be completed by Q3 CY2022, with initial assay results anticipated to be available from Q4 CY2022, post the Company’s IPO.

Chalkos Metals works with a “Mineral Systems” approach. The emphasis is on critical geological elements to form a deposit rather than absolute conformity to a deposit model. These critical elements are:

  • A metal source with hydrothermal fluids
  • An energy source to drive fluids
  • Crustal architecture to provide fluid pathways
  • Physical or chemical gradients to precipitate metals

The Mount Isa Project becomes very attractive for exploration when applying this mineral systems approach, particularly given that the nearby Mt Isa Copper orebody is implicitly a manifestation of the same mineral system, albeit with a very different geological character.

Proposed Exploration Program and Budget

Chalkos Metals intends to undertake a 7,000m, 27 hole diamond/RC drilling campaign, commencing in CY2022, to test the remaining 10 priority targets over the 7 prospects identified at the Mount Isa Project (Dali, Goya, Friday, Eldorado, Bambino, Federol West and Turpentine), and intends to execute a drilling contract in the near future to that end.

The proposed drill program includes:

  • 2 drill holes at the Dali prospect on EPM 26920;
  • 5 drill holes at the Goya prospect on EPM 26141;
  • 10 drill holes at the Frida prospect on EPM 26141;
  • 3 drill holes at the Eldorado prospect on EPM 27013; and
  • 3 drill holes at the Bambino prospect on EPM 27013.

Company's Objectives

Chalkos Metals’ objectives are to:

  • undertaking a 7,000m diamond/RC drilling program to test the 10 remaining priority targets on the Tenements;
  • conducting targeted geophysical surveys including EM/IP/Gravity over selected priority prospects;
  • further field work including soil sampling, rock chipping and mapping;
  • achieving the grant of EPM applications 28311 and 28312 and completing first-pass geophysics; and
  • pursuing other acquisitions that have a strategic fit for the Company.

On completion of its immediate objectives, the Company’s longer-term goals over the next 2 – 4 years following IPO are to:

  • continue with exploration activities on its Tenements;
  • aim to define a mineral resource (as per the JORC reporting code) on the Tenements; and
  • continue to identify underexplored regions where there is potential for large scale discoveries.

Management and Board

Chalkos Metals Ltd has assembled a well-qualified and balanced board and senior management team with proven corporate, technical, financial and commercial expertise ideally suited to maximising the value of the Company’s Mount Isa Project.  These include:

Andrew James Newman – Executive Chair

Andrew Newman has 20 years of finance and operational experience in the mining and resources sector. He has held senior roles in Australia and North America and was most recently the CFO for Glencore’s QLD Metals Division and Board Director for Glencore Technology. Based in Mount Isa and overseeing operations in Northern Australia, Andrew was financially accountable for the copper, zinc, lead value chain encompassing the Mount Isa Mines & George Fisher complex, Lady Loretta Mining, Ernest Henry Mining and the Townsville Copper Refinery and port assets.

Dr Rick James Gordon – Non-Executive Director

Rick Gordon held management positions with Northern Star Resources as the Geology Manager for Kanowna Belle underground gold mine and as the Exploration Manager for Kalgoorlie. During his time at Northern Star (and its predecessor Barrick Gold), Rick was a key part of the teams that discovered the Pegasus orebody in 2012, Paradigm North satellite orebodies in the Carbine-Carnage area, and the 2014 Millennium discovery which led to the re-establishment of the Kundana Mining Centre. Before Northern Star, Rick spent five years with IGO Long Nickel mine as a Mine Geologist and Senior Mine Geologist and was a key part of the team that added significant mine life with extensions to the McLeay and Long North orebodies and discovered the Moran orebody. Rick graduated from the University of Queensland with BSc(Hons) in 1999 with a passion for structural geology and completed his PhD which included unravelling the polyphase deformation associated with the Mount Isa Fault System.

Keith William Lawrence Middleton – Non-Executive Director

Keith Middleton is a corporate advisor and director of ASX listed companies specialising in the Australian and International resource sector. He has extensive experience in financial analysis, risk management, major capital works expenditure, corporate governance and ESG regulations. He is the former Managing Director of American Rare Earths (ASX:ARR) where he had direct accountability for mining operations and exploration activities coupled with strategy formulation, project evaluation and investor relations. He is a former Director of Redbank Copper (ASX:RCP) and a current director of Pacific American Holdings (ASX:PAK).

Jack Rosagro – Company Secretary

Mr Rosagro is Chartered Company Secretary, a Fellow of Governance Institute of Australia, and holds a Bachelor of Commerce majoring in Finance. He has 16 years’ experience in capital markets, share registry, and governance. He is currently the company secretary for several ASX listed clients including Stelar Metals Limited (ASX:SLB), Intra Energy Corporation Limited (ASX: IEC), and Harvest Technology Group Limited (ASX: HTG).

Key Offer Statistics

See ‘Summary of Offer’ section of the Prospectus for further information.

Use of Funds

Funds raised from the Offer will be applied as follows:

For further information on the Key Offer Statistics and Use of Funds, please see the prospectus.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 6 of the prospectus, Chalkos Metals Ltd is subject to a range of risks, including but not limited to exploration and development risks, key personnel, liquidity, commodity price, exchange rate, COVID-19 and the risk of requiring additional capital.

 

Section 734(6) disclosure: The issuer of the securities is Chalkos Metals Limited ACN 648 177 897. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

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Chalkos Metals Ltd ASX: CKM

Chalkos Metals Limited
Exploration company targeting copper and base metals with project located in Tier 1 area of Mount Isa

 

Chalkos Metals Ltd (ASX: CKM) is an Australian resources exploration company targeting copper and base metals at its wholly owned Mount Isa Project located adjacent to Glencore’s Mount Isa mine in Queensland. The Project currently consists of 7 identified prospects with 13 targets for mineralisation.  

$0.20Price
Up to $8 millionSize of Offer
01 Jun 22Offer Open
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