Chesterfield Resources PLC Agreement (0366S)
06 Marzo 2023 - 5:00PM
UK Regulatory
TIDMCHF
RNS Number : 0366S
Chesterfield Resources PLC
06 March 2023
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector:
Mining
6 March 2023
CHESTERFIELD RESOURCES PLC
("Chesterfield" or the "Company")
Adeline Project is optioned to Canadian explorer Sterling Metals
in exchange for cash and shares.
Chesterfield Resources plc is pleased to announce that it has
signed an agreement with Sterling Metals (TSXV: SAG,, OTC:SAGGF), a
TSX-V and OTCQB listed exploration company with regard to
Chesterfield's Adeline project in Labrador. According to the
agreement Sterling Metals will purchase an option to acquire full
ownership and rights over the project in exchange for a series of
payments of cash and shares. As a result, Chesterfield will become
a significant shareholder in Sterling, giving Chesterfield
shareholders a stake both in the upside of the Adeline property and
Sterling's 100% owned high grade, district scale, Sail Pond
silver-polymetallic property located approximately 500km from
Adeline.
The main elements of the agreement are as follows:
1) Sterling will pay a total of CAD$800,000 (GBP490,000) in
three separate payments: CAD$100,000 (GBP62,250) with immediate
effect, and CAD$300,000 (GBP183,750) following receipt of
permission from the TSX-V authorities to complete the deal, and a
final CAD$400,000 (GBP230,000) to be paid on or before 30 November
2024.
2) Sterling will issue a total of 9m shares to Chesterfield in
two equal lots of 4.5m, the first following and subject to receipt
of permission from the TSX-V authorities to complete the deal, and
the second tranche to be issued on or before 30 November 2024.
Chesterfield's ability to sell its shares in Sterling will be
restricted according to certain terms detailed in the
agreement.
3) The final CAD$400,000 and the second tranche of 4.5m shares
are payable should Sterling decide to exercise its option to
acquire the Adeline licences at any time prior to 30 November
2024.
Sterling Metals is a listed exploration company with with a
market capitalization of CAD17.35m (GBP10.65m), it is the holder
of
the Sail Pond project a 135km2 set of licences in Newfoundland,
eastern Canada. Discovered at the end of 2016, the Sail Pond
project consists of a 12 km anomaly with strong surface showings of
silver, copper, lead, antimony and zinc. Over the last two years
Sterling has uncovered a 1km footprint at the south end of the
anomaly which includes the 400m x 200m x 150m Heimdall zone as well
as a new zone, 500m north of Heimdall where drilling intercepted a
100% sulfosalt vein grading 1,564g/t Ag, 8.33% Cu, 12.83% Pb, 2.74%
Sb, and 3.93% Zn (A long section has been provided below in Figure
1). Sterling is currently running a deep Orion survey ( a
structural and mineralised mapping tool that reaches down to 2km
depth) to locate the source of this large footprint and plans to
drill the property in 2023. Sterling has a cash position at present
of CAD$3.5m (GBP183,750).
Figure 1: Longitudinal section looking west showing drilling
with silver equivalent mineralization on drillholes
Chesterfield Executive Chairman Paul Ensor said, "During the
competitive process that we undertook in September 2022 we got to
know Sterling well due to their great interest in Adeline and we
are delighted to have reached this agreement with them. Through
this new relationship, Chesterfield will have a stake in what in
effect becomes a regional play for potentially two highly
prospective licence areas in eastern Canada, in both cases
originally sourced from the same renowned group, Altius Minerals.
We look forward to working in partnership with Sterling to deliver
the best possible value from Adeline to our shareholders."
Sterling Metals CEO Mathew Wilson said, "We are thrilled to
partner with Chesterfield and begin work on the Adeline project.
The synergy due to the Altius ownership, our advisor Dr. Neil
O'Brien, and the close proximity to our Sail Pond asset makes this
an ideal fit and we anticipate limited friction in beginning our
exploration work. It is rare to find one, let alone two "company
making" assets in a junior explorer.The exposure for investors to
the significant potential for large scale critical metals projects
in such a wonderful jurisdiction as Newfoundland and Labrador makes
this partnership an immediate value add for both Sterling and
Chesterfield shareholders. This will be an exciting year."
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 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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