REG - Chesterfield Res PLC - Agreement

Chesterfield ResourcesAnnouncement

06/03/2023 16:00

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RNS Number : 0366S  Chesterfield Resources PLC  06 March 2023

Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining

 

 

 

6 March 2023

 

 

CHESTERFIELD RESOURCES PLC

("Chesterfield" or the "Company")

 

Adeline Project is optioned to Canadian explorer Sterling Metals in exchange
for cash and shares.

 

 

Chesterfield Resources plc is pleased to announce that it has signed an
agreement with Sterling Metals (TSXV: SAG,, OTC:SAGGF), a TSX-V and OTCQB
listed exploration company with regard to Chesterfield's Adeline project in
Labrador. According to the agreement Sterling Metals will purchase an option
to acquire full ownership and rights over the project in exchange for a series
of payments of cash and shares.  As a result, Chesterfield will become a
significant shareholder in Sterling, giving Chesterfield shareholders a stake
both in the upside of the Adeline property and Sterling's 100% owned high
grade, district scale, Sail Pond silver-polymetallic property located
approximately 500km from Adeline.

 

The main elements of the agreement are as follows:

 

1)    Sterling will pay a total of CAD$800,000 (£490,000) in three
separate payments: CAD$100,000 (£62,250) with immediate effect, and
CAD$300,000 (£183,750) following receipt of permission from the TSX-V
authorities to complete the deal, and a final CAD$400,000 (£230,000) to be
paid on or before 30 November 2024.

2)    Sterling will issue a total of 9m shares to Chesterfield in two equal
lots of 4.5m, the first following and subject to receipt of permission from
the TSX-V authorities to complete the deal, and the second tranche to be
issued on or before 30 November 2024. Chesterfield's ability to sell its
shares in Sterling will be restricted according to certain terms detailed in
the agreement.

3)    The final CAD$400,000 and the second tranche of 4.5m shares are
payable should Sterling decide to exercise its option to acquire the Adeline
licences at any time prior to 30 November 2024.

 

Sterling Metals is a listed exploration company with with a market
capitalization of CAD17.35m (£10.65m), it is the holder of

the Sail Pond project a 135km2 set of licences in Newfoundland, eastern
Canada. Discovered at the end of 2016, the Sail Pond project consists of a 12
km anomaly with strong surface showings of silver, copper, lead, antimony and
zinc. Over the last two years Sterling has uncovered a 1km footprint at the
south end of the anomaly which includes the 400m x 200m x 150m Heimdall zone
as well as a new zone, 500m north of Heimdall where drilling intercepted a
100% sulfosalt vein grading 1,564g/t Ag, 8.33% Cu, 12.83% Pb, 2.74% Sb, and
3.93% Zn (A long section has been provided below in Figure 1). Sterling is
currently running a deep Orion survey (a structural and mineralised mapping
tool that reaches down to 2km depth) to locate the source of this large
footprint and plans to drill the property in 2023. Sterling has a cash
position at present of CAD$3.5m (£183,750).

 

Figure 1: Longitudinal section looking west showing drilling with silver
equivalent mineralization on drillholes

 

 

 

Chesterfield Executive Chairman Paul Ensor said, "During the competitive
process that we undertook in September 2022 we got to know Sterling well due
to their great interest in Adeline and we are delighted to have reached this
agreement with them. Through this new relationship, Chesterfield will have a
stake in what in effect becomes a regional play for potentially two highly
prospective licence areas in eastern Canada, in both cases originally sourced
from the same renowned group, Altius Minerals. We look forward to working in
partnership with Sterling to deliver the best possible value from Adeline to
our shareholders."

 

Sterling Metals CEO Mathew Wilson said, "We are thrilled to partner with
Chesterfield and begin work on the Adeline project. The synergy due to the
Altius ownership, our advisor Dr. Neil O'Brien, and the close proximity to our
Sail Pond asset makes this an ideal fit and we anticipate limited friction in
beginning our exploration work. It is rare to find one, let alone two "company
making" assets in a junior explorer.The exposure for investors to the
significant potential for large scale critical metals projects in such a
wonderful jurisdiction as Newfoundland and Labrador makes this partnership an
immediate value add for both Sterling and Chesterfield shareholders. This will
be an exciting year."

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.

 For further information please visit www.chesterfieldresourcesplc.com
(http://www.chesterfieldresourcesplc.com) or contact:

 Chesterfield Resources plc                                  Paul Ensor, Executive Chairman  Tel: +44 (0) 7595 219 011
 First Equity Limited (https://www.brandonhillcapital.com/)  Jason Robertson                 Tel: +44 20 7330 1883

 

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