Why IPG And CHN Are In News Today?

IPD Group Limited (ASX: IPG) and Chalice Mining Limited (ASX: CHN) are making headlines today due to significant developments in their respective business ventures.

IPD Group Limited: IPD Group Limited has successfully completed the acquisition of EX Engineering Pty Ltd, a reputable Perth-based company specializing in designing, supplying, and repairing electrical hazardous area equipment (Ex equipment). The company is known for its strong focus on safety and strict adherence to certification processes, serving various industries, including Oil & Gas, Mining, Manufacturing, and Agriculture.

This strategic acquisition allows IPD to bolster its Ex equipment offerings and expand its reach to the Eastern States. The transaction details reveal that EX Engineering achieved impressive financial performance, with revenue of AU$12.4 million and normalized EBITDA of AU$2.5 million in the year ending June 2023.

The acquisition deal is valued at AU$10.2 million, comprising a combination of cash and newly-issued IPD shares. IPD anticipates that this move will be earnings accretive and is keen to utilize its national sales force to foster the growth of EX Engineering's business across Australia. The founders of EX Engineering, Warwick, and Jenni Greville, will play vital roles in leading the expansion efforts within IPD after the deal is finalized, which is expected to be soon. This acquisition opens up promising growth prospects for IPD Group Limited as it strengthens its position in the hazardous area equipment market and broadens its business operations in new regions.

Chalice Mining Limited: Chalice Mining Limited has recently entered into an earn-in and joint venture agreement with Northam Resources Limited. This agreement grants Chalice the opportunity to earn up to a 70% interest in Northam's vast exploration license holding, spanning approximately 1,600 square kilometers, situated in the West Yilgarn Province.

The region covered by the license holding is known to be rich in potential for magmatic nickel-copper-PGE sulfide deposits, similar to the highly significant Gonneville Deposit. Chalice's exploration focus will concentrate on three untested geochemical-EM anomalies, with plans for initial drilling scheduled to take place in late 2023 or early 2024.

Chalice's existing West Yilgarn tenure is contiguous with the newly acquired license area, and the company has already secured several access agreements for drilling purposes. This strategic agreement involves cash payments and exploration expenditures as Chalice works towards earning a significant interest in the exploration license.

The agreement with Northam Resources opens up vast opportunities for Chalice Mining Limited to further explore and potentially discover valuable mineral deposits within the West Yilgarn Province. With the region being relatively underexplored, Chalice's expertise and strategic approach to exploration hold the promise of exciting prospects and future growth potential for the company.

Conclusion

Both IPD Group Limited and Chalice Mining Limited are taking significant steps to expand their businesses and strengthen their positions in their respective markets. The successful acquisition of EX Engineering enhances IPD's offerings, while Chalice's joint venture agreement with Northam Resources presents an exciting opportunity for exploration and potential mineral discoveries. Investors and industry observers are closely monitoring these developments, anticipating further growth and success for both companies in the coming months and years.

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