Business
Update on Canadian Assets
Update on Canadian Assets.
About this update from Chesterfield Resources Plc
[{"type":"text","content":"\n\nChesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining\n \n 16 May 2023\nCHESTERFIELD RESOURCES PLC\n(\"Chesterfield\" or the \"Company\")\n \nUpdate on Canadian Assets\n \n \nFollowing 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.\n \nChesterfield 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. \n \nChesterfield 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 ...