REG - Chesterfield Res PLC - Disposal

Chesterfield ResourcesAnnouncement

18/06/2024 12:30

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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
(http://www.chesterfieldresourcesplc.com/)  or contact:

 Chesterfield Resources plc                                        Kashif Afzal, Executive Chairman  kashif@chesterfieldplc.com
 Peterhouse Capital Limited (https://www.brandonhillcapital.com/)  Charles Goodfellow                Tel: +44 20 7469 0930

 

 

 

 

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