Chesterfield Resources Share Discussion Threads

[jev1] 19/5/2021 11:49

Pension

I'm not the slightest bit upset, just amused at the inane assumptions and even further, your false sense of thinking you may know more about how to put the deal together than those at the helm.

You contacting them a day before they present the deal more fully makes zero difference.

How generous of you to 'now leave it with CHF'.

I think they've been pretty certain all along that the deal was in their hands from the outset.

[pensionplanner] 19/5/2021 11:41

jev. Not have experience in datailed analysis of prospects, but plenty of experience in analysis of contracts and mergers and acquisitions.

I have edited the 'murky' though as its probably inappropriate use of the word and substituted opaque.

Look don't get too upset, because by contacting the company with my observations, there may already be such safeguards that we don't fully know about, and let's face it most companies would not go to the extent of publishing every detail, every caveat, but at least it airs concerns, that if they are unwarranted allows the company to mention why.

Everyone gains then and I don't believe I need comment further, as it is with CHF now and I acted in good faith.

[excellance] 19/5/2021 11:41

Altius get 20% of CHF eventually, and CHF will own 100% of Adeline, so Altius still have a share in the asset, and get us to pay for its development.

We gain value by proving up the assets that we didn't have previously.

Yes there's risk, and cost, but being a one trick pony is also full of risk.

[soulsauce] 19/5/2021 11:40

This is Altius modus operandi. They have a very large portfolio of assets that they spin out for an interest and a royalty down the line.
It's very much along the lines of what similarly named Altus do with their large portfolio of mainly gold assets on the uk listings.
I am not sure why people are throwing up dust here before tuning in to the webinar.

[jev1] 19/5/2021 11:38

Wassapper

Spot on !

Painful, isn't it.

Like a double act making assumptions and drawing conclusions without the full detail.

'it's murky but I'll hold' .... can see they're fully versed at detailed analysis of prospects, not !

[pensionplanner] 19/5/2021 11:38

I've done better than that Matty, I've contacted the company today.

Just want to be sure that CHF are protected, as the terms published look to protect Altius, but little to protect CHF apart from voting rights and nothing about the performance of the assets in question and usually you would have a term within a contract relevant to the performance of the asset.

By contacting them today it may allow them to elucidate as there may be safeguards already in place and hopefully they can then be mentioned.

[mattybuoy] 19/5/2021 11:32

Altius are about as straight up as they come. They are basically a royalty company and prospect generator i.e. they don't develop things themselves beyond the early stages.

[wassapper] 19/5/2021 11:30

Then ask the Board tomorrow!

Becasue CHF have Poly money behind them?

[pensionplanner] 19/5/2021 11:17

excellence. The web page link for Altius. Correction leases were not up for sale.

Quite why a company much larger than Chesterfield want to deprive themselves of what they suggest are such good assets?

I don't know about this deal, it seems a bit opaque.

Why would a larger company with a much larger market cap. want to divest prime leases to a smaller company who don't have the cash to develop it, and then wish to take up to 20% in shares from Chesterfield.

Something doesn't really seem to add up, but hopefully all will be revealed.

[excellance] 19/5/2021 10:59

Why did Altius choose us?

Did they approach us?

Who are the individuals concerned pulling the strings?

Why didn't a major pick Adeline up?

My guess is that it's a brilliant deal for Adeline, because the CHF shares they get will be worth a multiple of the current cash value in just a few months.

It's a good deal for us too, cos a tiny company like CHF shouldn't be able to compete for assets like Adeline, but the prospect of a probable rapid share price rise here presumably swung the deal our way.

Obviously neither of our assets are proven yet, buy olive looks very positive.

[pranchalee] 19/5/2021 10:34

The shareholder list here is full of Canadian ceo,they know exactly what there doing

[mattybuoy] 19/5/2021 10:33

Great news. Altius are an excellent partner to have.

This deal does not negatively affect the Cyprus operations in any way.

[excellance] 19/5/2021 10:29

Agreed.

There is a bit of detail about historical soil samples and a bit of shallow drilling.

It would expect that our team has reviewed the efficacy of the data and maybe seen samples, or at least contract a third party if we can't do this ourselves.

We don't want to give away 20% of our apple pie for 100% of a very large cow pat.

I'm sure we've done DD.

[wassapper] 19/5/2021 10:27

All good thoughts and questions, and should be put to them tomorrow.

I would say that I reckon the Board have thought these things through, nay?

[goodgrief] 19/5/2021 10:26

"The rationale is to build an empire...with paper".

How much paper?

[pensionplanner] 19/5/2021 10:17

Happy to hold, but will want to make sure proper due diligence has taken place, as there seem little safeguards for Chesterfield in what I've seen.

If Polymetal were happy to pay over £2m to get foot in the door based on Cyprus asset alone, then potential for Altius gaining 20% of CHF for leases on paper not proven yet as viable commercially and Chesterfield needs safeguards on them being developed commercially, as otherwise the potential exists for non producing assets in Canada being used to get a free carry of 10% in Chesterfield, with prospect of another 10% acquired irrespective of how their own assets perform.

[excellance] 19/5/2021 10:07

I'm happy to continue holding on today news.

In order for PM to retain their 22.5% interest as agreed, they'll have to acquire more shares. How will they do this?

[excellance] 19/5/2021 10:02

The rationale is to build an empire...with paper.

If they could now swap paper for a producing and profitable mining company, they could be a self funded, top to bottom, diversified, global mining powerhouse, with massive potential future growth.

[excellance] 19/5/2021 09:55

I suppose they could helicopter the kit in, rather than build a thousand miles of tracks capable of supporting transport of drilling rigs.

We don't even own a single drilling rig yet!

Talk about running before we can walk...

Very exciting prospect, way beyond our current capabilities, but with help from strategic partners, a hit at olive on Cyprus, a couple of large placings, and a few years...CHF has a golden future.

I wonder how long we'll retain the name Chesterfield?

[goodgrief] 19/5/2021 09:49

Not sure of the rationale behind diversification when you've barely got going with your first prospect? And in accepting paper and initially continuing to lead the project, what do Altius get out of it?

[excellance] 19/5/2021 09:35

I didn't mean absolute control, I meant "more" control.

Which super cycle, this one or the next?

We won't drill until 23, probably for two years just to find something, then another 3 years defining it, then licensing, permitting, feasibility, finance, and maybe in twelve to fifteen years we'll have a mine there.

We may have a mine on Cyprus in five or six years, just in time for the last couple of years of this super cycle.

[talkman2] 19/5/2021 09:23

Access to infrastructure isn’t an issue . CHF will never out this into production themselves . They will prove up the asset and flog it to a major . The majors will be queuing up given the massive global demand for copper and the commodities super cycle

[wassapper] 19/5/2021 09:22

excellence - they do not have control and the deal specifically restricts them. Do you think Poly would allow control?

[pensionplanner] 19/5/2021 09:19

We also need to ensure that if any JEA grants are approved, they are to Chesterfield's benefit and that Altius don't claim them as part of their financial share of development, as it appears they will be at the helm of the project