REG - Chesterfield Res PLC - Corporate Update

Chesterfield ResourcesAnnouncement

26/06/2023 07:00

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RNS Number : 7825D  Chesterfield Resources PLC  26 June 2023

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

 

 26 June 2023

CHESTERFIELD RESOURCES PLC

("Chesterfield" or the "Company")

 

Corporate Update

 

 

Chesterfield is pleased to update investors on the Company's progress and
plans for 2023 and beyond.

 

Canada

 

Chesterfield's set of licences at Adeline in Labrador have been optioned to
Sterling Metals (SAG.V), a listed Canadian explorer, in exchange for cash and
shares on terms detailed in previous news releases earlier this year. Sterling
will be exploring two sets of highly prospective licences in eastern Canada,
Adeline, and Sail Pond. Having successfully raised in April a total CAD$6.476m
(£3.8m) through equity fundraisings, work has commenced on both properties,
starting on 5 June with a 2,000 metre drill programme at Sail Pond. During
2023 Sterling expects to spend CAD$1.75m (£1.02m) in total at Sail Pond, and
at Adeline will spend a total of CAD$2.5m (£1.47m) on an airborne survey and
a 2,500 metre drill campaign. For more details please refer to the Sterling
Metals website (https://sterlingmetals.ca/ (https://sterlingmetals.ca/) ).

 

Chesterfield shareholders will continue to enjoy the benefits of any
exploration success at Adeline, whilst not needing to raise capital to do so
and also diversifying risk with the added exposure to Sail Pond.

 

Cyprus

 

In late 2022 the Company rationalised its licence holdings in Cyprus, reducing
holdings from a total of 26 licences covering 110.42 km2 to 3 licences
covering 13.39 km2. This change was made in order to reduce holding costs on
the relinquished ground, while at the same time not losing focus on the
valuable work and data collected on the licences retained. The Company has
formulated plans for further exploration work on the retained properties, and
remains in preliminary discussions with potential joint venture partners to
carry out this work. The Board would prefer to work with partners on these
promising properties and will update shareholders as and when any formal
arrangements are entered into.

 

Other Opportunities

 

The Board aims to make the most of the Company's resources through what it
aims to be a transformational investment into a new area of activity.
Extensive work is underway to consider a number of possible options on offer.
The most important criterion behind this work will be to generate significant
shareholder value in the near term, and the goal is to be able to announce the
direction of this next phase in Chesterfield's development by the end of 2023.
Shareholders should note that, subject to the terms that may be agreed for
these opportunities, additional capital raising or additional shares being
issued are possible outcomes.

 

Cash management

 

Both for fiscal prudence and in order to improve the Company's position with
regard to any future investment, the Board has made significant cut backs in
all aspects of running costs. These cuts have included significant reductions
in payments to Board members which have been running at £2,500 monthly in
aggregate for the last several months. This contrasts with the payments to the
previously larger Board that totalled £285,906 during 2022. With no debts and
very low cash outlays, the Company is in a stable financial condition for the
foreseeable future, and notwithstanding any further acquisitions or
investments should preclude the need for a dilutive capital raise.

 

Website

 

The Company's website address has recently moved to a new address:
https://www.chesterfieldplc.com/

 

 

Chesterfield Executive Chairman Paul Ensor said, "Since the new management
took over in Autumn 2022 we have not wavered in our emphasis on radically
reducing current outlays and avoiding future spending commitments that we were
not confident we could underwrite without raising new equity. Our focus now is
primarily on finding  opportunities that will be the right fit with our
resources and capital structure that will generate shareholder value once
agreed and transacted."

 

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 https://www.chesterfieldplc.com
(https://www.chesterfieldplc.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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