Chesterfield Resources PLC Disposal

RNS Number : 7728S

Chesterfield Resources PLC

18 June 2024

 

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	[e-mail]
Peterhouse Capital Limited	Charles Goodfellow	Tel: [phone]

 

 

 

 

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