REG - Chesterfield Res PLC - Update on Canadian Assets

Chesterfield ResourcesAnnouncement

16/05/2023 14:45

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RNS Number : 6125Z  Chesterfield Resources PLC  16 May 2023

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

 

 16 May 2023

CHESTERFIELD RESOURCES PLC

("Chesterfield" or the "Company")

 

Update on Canadian Assets

 

 

Following its successful fundraising in Canada, Sterling Metals ("Sterling"),
in which Chesterfield holds a significant equity stake is planning a very
active few months of exploration, including drilling on its two properties in
eastern Canada, Adeline and Sail Pond. Sterling raised a total of CAD$6.476m
(£3.8m) through equity issues which were completed and announced on 17 April.
These funds have brought Sterling's overall cash position to total CAD$7.75m
(£4.5m) and have put it into a strong position from which to pursue an
aggressive exploration campaign with a budget of CAD$4.25m (£2.5m) this year.
Sterling has earmarked CAD$2m (£1.18m) for a 2,500 metre drill campaign this
summer in Adeline, in addition to the CAD$500,000 (£296,000) airborne survey
planned over the licence area. In addition, Sterling will be spending
CAD$750,000 (£443,790) on a 2,500 metre drill programme on its Sail Pond
licence area as well as CAD$1m (£591,715) on general technical services.

 

Chesterfield owns 4.5m shares in Sterling which it received in addition to
CAD$400,000 (£236,686) according to the agreement announced on 6 March.
According to that agreement, Sterling agreed to purchase an option to acquire
full ownership and rights over the Adeline project in exchange for these
payments. In the event that Sterling decides to complete its purchase of the
Adeline project, it will pay Chesterfield a further 4.5m shares and
CAD$400,000 (£236,686) no later than 20 November 2024. As of close of
business on 15 May, Chesterfield's stake in Sterling was valued at CAD$562,500
(£332,840). To put this into context, this means Chesterfield holds a 4%
stake in Sterling which at close of business on 15 May had a market
capitalisation of CAD$13.96m (£8.26m), a valuation amply supported by its
strong cash position and nothwithstanding the imminent exploration activity.
 

 

Chesterfield Executive Chairman Paul Ensor said, "Sterling's success in
fundraising in difficult markets is very good news for Chesterfield
shareholders. It is equally gratifying to see Sterling give Adeline the
emphasis that it deserves within its overall budget and we very much look
forward to hearing of the results of their ambitious schedule of work there
and at Sail Pond in the coming few months. Chesterfield shareholders are
closely aligned to potential results of this extensive work on both projects
through its shares in Sterling."

 

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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