£2.5m Gross Fundraising and Prospectus Publication

RNS Number : 9479H

Chesterfield Resources PLC

08 December 2020

 

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

8 December 2020

£2.5m Gross Fundraising and

Publication of Prospectus

Chesterfield Resources Plc (the "Company") is pleased to announce that, further to its announcement on 26 November 2020, it has raised gross proceeds of £2,500,000 from the conditional issue and allotment of 27,777,778 new ordinary shares at an issue price of £0.09 per share ("Fundraising") and the publication of a prospectus, as approved by the Financial Conduct Authority, in connection with the Fundraising (the "Prospectus").

The Company has raised gross proceeds of £2.5m from the following sources:

· £2,100,000 from the issue and allotment of 23,333,334 ordinary shares to Polymetal International in accordance with its investment commitment as described in the announcement made by the Company on 26 November 2020

· £100,000 from the issue and allotment of 1,111,111 ordinary shares to placees, in respect of a placing undertaken by Fox-Davies Capital Limited

· £300,000 from the issue and allotment of 3,333,333 ordinary shares to subscribers, in accordance with direct subscription letters with the Company

A total of 27,777,778 new ordinary shares (the "placing shares") in the capital of the Company will be admitted to trading and admission of the placing shares is expected to take place at 8.00 a.m. on Friday, 11 December 2020 ("Admission").  The Fundraising is conditional only on Admission. 

In connection with the Fundraise, the Company will be grant Fox-Davies Capital Limited 55,556 warrants with a exercise price of £0.09, vesting upon Admission and expiring on the fifth anniversary of Admisison.

Further information related to the Fundraising is set out in the Prospectus, which can be accessed electronically from the Company's website at https://www.chesterfieldresourcesplc.com/investors/reports/ and at the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .

On Admission, the Company's issued share capital will consist of 101,711,112 ordinary shares and a total of 2,000,000 deferred shares (the deferred shares of the Company are not traded and no application will be made for such shares to be admitted to trading on the Main Market).  The Company does not hold any Ordinary Shares in Treasury. The total voting rights from Admission will therefore be 101,711,112 ordinary shares. This figure above may be used by shareholders as from 11 December 2020 as the denominator for the calculations by which they determine if they are required to notify their interest in, or change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Follow us on Twitter at @ChesterfieldPlc 

About Chesterfield Resources

Chesterfield Resources is a copper-gold exploration company active in Cyprus, where it holds the largest mineral exploration licence area of any operator on the island. Polymetal International, the FTSE 100 mining group, recently announced it had taken a 22.5% strategic investment in Chesterfield via a placing of new shares.

Cyprus is regarded as a good quality exploration location. It is a member of the EU, and its legal system is based on English common law. There has been minimal exploration activity on the island in the last 46 years since the invasion by Turkey in 1974 put a halt to what had been a very active mining industry.

Since that time, exploration technology and geological knowledge has improved significantly. The company is exploring for VMS (Volcanognic Massive Sulphide) deposits, which typically occur in stacks and clusters. Historically only those deposits which were visible from surface have been mined. It is believed that many more deposits remain undiscovered buried near surface, and the company is using modern techniques to locate them.

While copper is the main exploration target, it is noteworthy that gold was not historically exploited in Cyprus as its price was pegged to just $35 per ounce when the mining industry was active in the 1960s and 1970s (less than 50 times today's price). Gold has been encountered in several locations in the exploration target area and is an important part of the exploration objective.

The exploration team is led by three very senior geologists: Neil O'Brian, formally Head of Exploration, Lundin Mining, Dave Cliff, previously Head of Exploration Europe, Rio Tinto, and Mike Parker, previously a senior geologist with First Quantum Mining

The current focus of exploration is in the Troodos West group of licences belonging to the company, with around 30 defined targets in an area measuring 10km by 10km. The objective is to discover several VMS deposits in close proximity to each other to create a mining project with a centralised processing unit.

Chesterfield Resources is committed to world-class environmental standards in all of its operations to mine copper, which is essential to developing clean technology projects worldwide. The company hopes to develop industry and opportunities for the benefit of the Republic of Cyprus.

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.

**ENDS**

 For further information, please visit  www.Chesterfieldresourcesplc.com  or contact:

Chesterfield Resources plc: Martin French, Executive Chairman	Tel: [phone]
Fox-Davies Capital Limited (Broker): Daniel Fox-Davies	Tel: +44 ( 0)20 3884 8450

 

END

 

 

PDITPBTTMTJMBPM