All you need it's just to convert CHM to MOBI format using Calibre.
But in this case you can get artifacts like in picture below
So we need:
Remove table and link CONTENTS
1 Remove buttons
To get images from CHM like from archive you can use CHMdir plugin for Total Commander. Find necessary images and edit them. Make them blank with any image editor (it could be even Paint for Windows).
2 Remove table
Follow all operations on a screenshot
You are ok if in field 6 after test (5) you will have not zero
In this example I replaced:
<table width="100%" border=" 1 " bgcolor="#EBEBFF">
<table width="100%" border=" 0 " bgcolor="#EBEBFF">
to hide the table and
<a class="docLink" href="Front%20matter.htm">CONTENTS</a>
with empty line to remove this link.
After all this steps you will have pretty clean e-book in mobi format