The Chalice Mining Ltd (ASX: CHN) share price finished in the red on Wednesday amid the company completing a major demerger.
At the close of trade, shares in the mining company were down 4.26% to $8.55.
Let's take a look at what happened with Chalice Mining on Wednesday.
Image source: Getty Images
What did Chalice tell investors today?
Chalice advised the market it had completed its demerger, spinning off its gold-focussed Falcon Metals business.
The company announced it has completed the distribution of Falcon shares to eligible Chalice shareholders.
Investors involved in Falcon's $30 million initial public offering (IPO) have also been issued their shares today.
Falcon Metals Limited is earmarked for listing on the ASX on Monday with the ASX code FAL. Its shares are scheduled to start trading at 11am next Wednesday although the listing is subject to the company satisfying ASX conditions.
The drop in the Chalice Mining share price today should come as no surprise. As previously reported by my Foolish colleague, it was tipped Chalice shares would trade lower on the day of the demerger announcement, reflecting Falcon's departure.
However, this is expected to be offset when Falcon Metals shares are distributed.
With the spin-off of its gold assets, Chalice Mining is now expected to focus on its Julimar Nickel-Copper-PGE Project in the Avon region of Western Australia.
This leaves Falcon to go for gold at its key exploration assets in Victoria and Western Australia.
Chalice Mining share price snap shot
The Chalice Mining share price has surged in the past 12 months, up 141%. Year to date, the company's shares have gained 120%.
However, in the past month, Chalice shares have slipped 12% and have fallen more than 7% in the past week.
At its current share price, the company's market capitalisation is just over $3 billion.
