[dehai-news] (CG) ERITREA: CHALICE GOLD MINES RAISES $4.4 MILLION


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From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Wed Sep 02 2009 - 15:18:55 EDT


Chalice Gold
 
2/09/2009
 
CHALICE GOLD MINES RAISES $4.4 MILLION
 
Fresh funds will strengthen cash position while feasibility study on
Koka Gold Deposit is completed

Exploration on 600sqkm Zara Project can now be accelerated
 
Chalice Gold Mines Limited ("Chalice") advises that it has raised
$4,401,000 (before issue costs) to fund the ongoing development of the
Zara Project in Eritrea through the placement of 16,300,000 shares at 27
cents per share ("the Placement").

The Placement, to institutional and sophisticated investors introduced
by Southern Cross Equities as lead manager, will be made pursuant to the
15% allowance under the ASX Listing Rules and is scheduled to be
completed on or around September 10, 2009.

The capital raising will increase Chalice's cash balance to
approximately $10.5 million.
 
All costs and liabilities associated with the merger with Sub-Sahara
Resources are now settled.

Dr. Doug Jones, the Managing Director of Chalice said: "The Placement
strengthens Chalicefs balance sheet while it undertakes the scoping
study for
the Koka Gold Deposit, scheduled for completion by late October 2009,
and the feasibility study, scheduled to be delivered in May 2010.

Importantly, it will also allow for a substantial program of exploration
on the 615 square kilometre Zara Project where we have previously
identified numerous gold targets for follow up and where we are already
seeing encouraging additional prospectivity for both gold and base
metals."

Chalice also advises that subject to shareholder approval at the
Company's next General Meeting, it will issue Southern Cross Equities
and Thomas Weisel Partners Canada Inc, one million unlisted share
options each for providing ongoing services to the Company, including
the share placement.
 
These options will have an exercise price of 35 cents and expire two
years from the date of issue.

For further information on the Zara Project and the Koka Gold Deposit
please refer to our website at
 <http://www.chalicegold.com> www.chalicegold.com.
DOUG JONES
Managing Director

http://chalicegold.com/
 

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