Chesterfield Resources / EPIC: CHF / Market: LSE / Sector:
Mining
18 June
2024
Chesterfield
Resources
("Chesterfield" or the "Company")
Agreement on the sale of
Adeline Licences to Sterling Metals
SUMMARY
·
Final sale of Company's eastern Canadian
Adeline copper exploration project;
·
Aggregate consideration, in cash and shares, of
approximately £550,000;
·
Consideration equivalent to Chesterfield's current
market capitalistion of £525,000;
·
Enhanced cash pile will enable management to
accelerate evaluation of exploration plans in Cyprus as well as
furthering additional investment and acquisition
opportunities.
DETAILS
Chesterfield Resources plc is
pleased to announce that it has reached an agreement to complete
the sale of the Adeline project in eastern Canada to Sterling
Metals ("Sterling", SAG.V), the TSX-V listed Canadian exploration
company.
This agreement follows upon a
previous agreement with Sterling announced on 6 March 2023 under
which Sterling agreed to purchase an option to acquire Adeline in
exchange for a combination of cash and shares in Sterling, which
were partly paid and issued to Chesterfield in 2023 with the
balance due in late 2024 in the event Sterling decided to exercise
their option.
According to this final sale
agreement, Chesterfield and Sterling have committed to complete the
sale of Adeline to Sterling by 30 June (subject to TSXV approval)
for the following: a cash payment of CAD200,000 (approx. £115,000)
and the issue of an additional 8.5m Sterling shares to
Chesterfield. As a result of this transaction, Chesterfield will
hold a total of 12,692,000 shares of Sterling, a 5.46% stake in the
company, which is currently valued at CAD$ 761,500 (approx.
£435,000). The shares are subject to certain customary lock up
provisions.
The final sale of Chesterfield's
interest in Adeline removes the uncertainty over Sterling's
exercise of their option to acquire Adeline which may not have been
finally known for several months. Further, the need for a
significant exploration budget by Chesterfield is removed whilst
retaining exposure to any exploration success. In addition, the
balance sheet will be significantly strengthened with the cash and
share payments received.
Sterling have recently announced the
completion of the acquisition of the Copper Road Project in
Ontario, and the appointment of Mark Goodman as Chairman. The
company is well funded and expects strong news flow in the months
ahead as it works to emerge as a leading Canadian copper
explorer.
Chesterfield continues to manage its
resources carefully and can now evaluate the exploration plans in
Cyprus as well as additional opportunities with the confidence of
this increased non dilutive funding.
Chesterfield Executive Chairman Kashif Afzal said, "This
completes an important and beneficial transaction for Chesterfield,
removing both any uncertainty and our exposure to future liability
and dilution from exploration expenditure, while at the same time
maintaining exposure to any future success at Adeline, as well as
Sterling's other promising projects in Canada. We have been
impressed by the progress Sterling have made since our initial
agreement with them last year, and we are confident that it is in a
strong position to generate additional value for shareholders in
2024 and beyond. Further, our enhanced financial resources will
allow us to look at our prospective licences in Cyprus with a
different perspective and to also continue our search for new
opportunities with greater financial strength. "
**ENDS**
For further information, please
visit www.chesterfieldresourcesplc.com or
contact:
|
Chesterfield Resources
plc
|
Kashif
Afzal, Executive Chairman
|
kashif@chesterfieldplc.com
|
|
Peterhouse Capital
Limited
|
Charles Goodfellow
|
Tel: +44 20 7469 0930
|