Chesterfield Resources PLC Corporate Update (7825D)
June 26 2023 - 2:00AM
UK Regulatory
TIDMCHF
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
(GBP3.8m) 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
(GBP1.02m) in total at Sail Pond, and at Adeline will spend a total
of CAD$2.5m (GBP1.47m) on an airborne survey and a 2,500 metre
drill campaign. For more details please refer to the Sterling
Metals website ( https://sterlingmetals.ca/ ).
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 GBP2,500 monthly in aggregate for the
last several months. This contrasts with the payments to the
previously larger Board that totalled GBP285,906 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 or contact:
Chesterfield Resources Paul Ensor, Executive Tel: +44 (0) 7595
plc Chairman 219 011
First Equity Limited Jason Robertson Tel: +44 20 7330
1883
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