In the recent disposal rns it stated that CHF will receive more SAG shares and less cash than originally agreed, and several months earlier than agreed, the question is why, and at whose insistence?
Personally I am amazed that the disposal went thru at all, but delighted that it did.
SAG have some sterling assets, and we own over 5%, while we also have a little cash, extremely low costs, and another asset to dispose of or work on. |
I see a very similar scenario here. |
Take a look at MNRG to see how a little bit of good news can cause an share price to ten bag.
Over there they sold an asset for nothing but removed a liability, changed address and secretary. Received news of the Kyrgyzstan government removing a ban on uranium mining...and suggestion of a possible RTO...and bingo ten bagger! |
Frenchy told me that he was happy with the Westline drilling results and in his head he wouldn't swap them for another drilling program...
Why he then went off track signing Adeline and then spending all of his time trying to get another IPO going in Canada is a mystery and a mistake, but that is all behind us now.
We still have Westline, but there is also talk of new opportunities tapping in to the UAE network, but we'll have to wait and see how that pans out.
Today we see good news, but it is only one step. I doubt this will multi bag until we get some kind of plan to sell. |
We have gone thru a difficult transition, with the former management team being forced out or just leaving thanks to their poor decision making and bad economic conditions, and the disposal confirmed today is the final piece to be removed before the new team can come in with funding and take us to new horizons.
We have the Westline trend with three licenses in Cyprus, but who knows what new projects the new team will bring.
For me we need to drill half a dozen holes at Westline at the very least. |
This is going to multi bag! |
So, the bank balance should be about £350,000 which is nice, but not enough for a solo exploration program, so a partner with capability is the best option, or else it's dilution and using contractors. |
The Group’s cash position at 31 December 2023 was £278,675 (2022: £304,022). |
This deal means that uncertainty about liabilities towards Adeline are replaced with cash and a free carry in Canada.
CHF now have about £300k in the bank and 5% of Sterling equity worth a similar amount or more, but could rocket 20 fold.
Now we can turn towards Westline and give that our full attention.
I'm fairly sure we'll see a partner there, someone like Venus, perhaps even another disposal, or a merger. |
Well, I honestly thought Sterling had backed out of the Adeline deal, so I'm delighted with the news today. Delighted to be wrong! |
Get in, the albatross is gone, we have substantial cash, and 5.5% of Sterling. |
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. |
Looks like Sterling have dropped Adeline out of their immediate plans. They could buy the entirety of CHF for the same amount as the second tranche of Adeline and retain their own shares, and have a London listing and a modest Cyprus portfolio. |
It's been a POS almost from the beginning.
The ludicrous decision to go with Adeline, which is far too large a project to embark on for CHF in the first place, combined with the completely wrong decision to try and list in Canada, were bad enough.
Then the buck has been passed onto someone that doesn't seem to know how to arrest the slide, and CHF is floundering as a shell with no real assets and nothing to develop them with.
5% of Sterling doesn't equate to much, and they would kill the price if they try and sell in the market.
Anyone buying shares here is just bonkers. |
You say CHF is a POS, but CHF is just a shell with a thimble full of cash, three quite interesting licenses in Cyprus, and 5% of Sterling...
Obviously Sterling is a 100% exploration proposition and needs to hit decent grades/intervals to enable further funding.
CHF appear to be ready to offload all of the natural resource assets and find opportunities elsewhere. |
My opinion is that it is too isolated and it is on native American tribal lands, two good reasons to avoid, however, a significant discovery would open the door for road and rail infrastructure to be built but that would take at least a decade, but it will happen anyway some point, regardless of mineral resources. |
"Copper and gold are at all time high levels, yet Sterling and Chesterfield are at rock bottom."
That's because the former is a tiny small cap without the resources to drill its projects in a meaningful way in order to create shareholder value, and the latter is a POS!
Ask yourself why all the larger Canadian mining companies with the funds to explore Adeline ignore the project? |
Copper and gold are at all time high levels, yet Sterling and Chesterfield are at rock bottom.
Ok Sterling have taken on projects they can never hope to fund, and have found nothing to get excited about, and Chesterfield, or whatever it's calling itself these days, has only one employee, no tangible assets, very little cash, and a little equity in the company named previously.
Surely the new boy has a plan and Polymetal have completed their transaction by now? They promised a news release once Poly were out but maybe that's part of a bigger deal? |
"The final completion of the sale of the shares by Polymetal remains subject to certain regulatory considerations and it is expected that formal notification will be issued upon completion of the remaining formalities." |
Sterling raised $6m last year under the guise of drilling Adeline, and after drilling 11 holes left a rig on site to potentially drill some winter holes on the ice.
Winter has gone, no winter holes, and $500k spent buying Copper Road along with paper.
Sterling have til November to complete the Adeline deal and give CHF a small cash lifeline.
Not sure if new boy CEO has any real capability to actually run an exploration company on his own, yet he has invested quite a bit of pin money along with his reputation so I'm sure he has a plan. |
Whilst the Directors are of the view that the Group will have sufficient funds, taking into consideration Sterling Metals (SAG.V) ability to exercise their option to fully acquire the Adeline Project by November 2024 and ability to raise additional funds by the sale of the SAG.V shares. Notwithstanding, the current conditions do indicate the existence of a material uncertainty that may cast significant doubt regarding the applicability of the going concern assumption and the auditors have made reference
to this in their audit report. The Directors are confident in the Company’s ability to realise additional funds as required within the next 12 months. Thus, they continue to adopt the going concern basis of accounting preparing these financial statements. |
It is there.
As expected there's nothing good in it. |
So we get an RNS saying the annual report is out but still no sign of it on the company website. |
Now we've seen Ariana drop the Venus IPO plan we have to wonder if they have a plan B, and if that includes anything we have.
PE stated that CHF have been entertaining conversations about some kind of deal for our Cyprus licenses and that he'd prefer we work WITH potential partners, but he's gone now and still no deals.
Juniper man is now in the hot seat, having bought Polymetal's holding for an unspecified sum, and seeking finance in UAE, and perhaps some cash and shares from Sterling or Adeline back in our portfolio, we await further developments... |
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