June 6 (Reuters) - Chalice Gold Mines CHN.AX -
* Chalice subscribes to $1m share placement in ausgold limited
* Chalice gold mines -agreed to subscribe to share placement of 40 million shares in ausgold at an issue price of 2.5 cents per share for a total of $1.0 million
* Has agreed to sell dumbleyung project to ausgold for 15 million shares and 10 million unlisted share options that are exercisable at 3.5 cents per share
* Following placement & issue of dumbleyung consideration shares and options, chalice will hold a 12% interest in ausgold
* Funds from placement will predominantly be used to advance ausgold's flagship katanning gold project in western australia Source text for Eikon: ID:nASXV6nM1 Further company coverage: AUC.AX