Chalice Mining managing director Alex Dorsch says there are positives for the company in a potential tie-up with giant Japanese conglomerate Mitsubishi after investors were unimpressed by its inability so far to find a partner capable of bringing its critical minerals discovery into production.

The Chalice share price plunged almost 20 per cent to $1.22 in trading on Wednesday, after it delivered a “non-binding memorandum of understanding” with Mitsubishi.