PERTH (miningweekly.com) – ASX- and TSX-listed Chalice Gold Mines has shifted gears, announcing its intention to focus on exploring its Australian and Canadian assets, rather than the acquisition of an advanced resources project.

“After realising more than $100-million in net proceeds from asset sales over the last decade, Chalice has been focused on acquiring an advanced mineral asset with the potential for significant growth and near-term cash flow,” executive chairperson Tim Goyder said this week.

“However, after careful consideration, the board strongly believes that continued investment in our current exploration portfolio provides a compelling opportunity for shareholders and, in light of this strategic shift, the acquisition of an advanced resource project is no longer the major focus of the company.”

Chalice would now be seeking shareholder approval to return some A$10.7-million of its near A$34-million cash reserves to shareholders in the form of 4c in cash per share.

Subject to shareholder approval and the receipt of an Australian Taxation Office class ruling, the capital return will be completed in early December.

“The proposed capital return marks a significant turning point for Chalice,” CEO Alex Dorsch said.

“While the decision to return surplus capital to shareholders is an acknowledgement of the difficulty in finding suitable quality assets in a highly competitive market place, it also highlights the significant exploration opportunities we have within our current portfolio.”

“We strongly believe that a more compelling risk-reward proposition for shareholders exists in exploration stage projects,” he added.

“We will continue to be results-driven and actively manage the portfolio to ensure a balanced risk profile. We are excited about the prospect of generating significant returns for shareholders from our new leveraged exploration strategy and highly encourage shareholders to re-invest their proceeds.”

Chalice is expected to launch a major drill programme at its Pyramid Hill gold project, in Victoria, shortly.