Corporate Update

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/).

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 or contact:

Chesterfield Resources plc	Paul Ensor, Executive Chairman	Tel: [phone]
First Equity Limited	Jason Robertson	Tel: [phone]

 

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