The Chalice Mining Ltd (ASX: CHN) share price is struggling today, despite no price-sensitive news having been released by the company.
However, it did provide the market with a non-price sensitive update on the demerger of its Australian gold assets.
At the time of writing, the Chalice Mining share price is $9.06, 0.06% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.65%.
Let's take a closer look at the latest news out of Chalice Mining.
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Chalice Mining share price slips despite demerger update
The Chalice Mining share price is sliding amid news that the company's spin-out, Falcon Metals Ltd's initial public offering (IPO) has closed oversubscribed.
The IPO saw $30 million raised. It comprised of a priority offer for the parent company's shareholders and a shortfall offer.
The offers saw 60 million Falcon shares sold for 50 cents apiece.
The parent company will also be issuing Falcon shares through a pro-rata in-specie distribution.
Shareholders will receive 1 Falcon share for every 3.034 (approximately) Chalice Mining shares held on 13 December.
At the offer price, assuming no additional shares are issued and no options exercised, the company is expected to have a market capitalisation of around $88.5 million upon listing.
Chalice Mining noted that the oversubscribed offer will see Falcon in a strong cash position when it floats on the ASX.
Falcon is now expected to float on 22 December under the ticker FAL.
It will hold the Pyramid Hill Project, Viking Project, and the Mount Jackson Project.
Its parent company today stated it will have a "unique platform to make a tier 1 gold discovery in Victoria and Western Australia", with drilling activities expected to begin at Pyramid Hill in early 2022.
The demerger's expected to help Chalice Mining focus on its Julimar Nickel-Copper-PGE Project.
Right now, the Chalice Mining share price is 110% higher than it was at the start of 2021. It has also gained 4.1% since this time last month.
