Chesterfield Resources plc announced it is to acquire 100% of a belt-scale copper exploration project, named Adeline, in the Labrador region of eastern Canada.
The company, which is exploring for copper in Cyprus, said its objective was to be a leading copper exploration and resource development company to help supply the global demand for electrification.
Adeline covers an entire geological basin nearly 40km long, that hosts more than 200 known copper occurrences.
Chesterfield said that previous prospecting and drilling on the site had encountered high-grade copper-silver mineralisation, and that there was the potential for “world class discoveries.”
The project is close to the regional service hub of Goose Bay and in range of major road and rail infrastructure to the coast.
TRANSACTION
The purchase, via an all-share deal, is from Canadian miner Altius Minerals Corporation who will be a strategic shareholder and help design and manage initial exploration operations on behalf of Chesterfield.
Altius will be issued 10% of Chesterfield’s stock as payment for the project, with an option to purchase a further 10% via a three-year warrant exercisable at 20p.
The Canadian miner is also entitled to a 1.6% gross sales royalty.
Chesterfield, which recently strengthened its team ahead of the Adeline deal, said initial expenditure obligations would be easily managed within the company’s current cash reserves.
GLOBAL FOOTPRINT
Executive chairman Martin French said that the new project complemented the company’s copper exploration in Cyprus.
“The Adeline project is an outstanding acquisition for Chesterfield.
“It is highly unusual to secure and be able to explore an entire copper belt in a top-tier jurisdiction. The project has the potential for a world-class discovery.
“We have taken a strategic decision to greatly increase our global footprint of high quality copper exploration assets.
“Our objective is to be positioned as a leading copper exploration and resource development company to help supply the surging global demand for electrification.”
Chesterfield was co-founded by a Canadian and retains a core group of Canadian shareholders. The miner’s director of exploration, Dr Neil O’Brien, is a Canadian based near Toronto.
COPPER BELTS AND DEPOSITS
Dr O’Brien said that there were distinct similarities to many of the world’s great sediment-hosted copper deposits and belts.
These include very rich copper ore mineralogy, efficient metal traps needed to form economic copper-silver deposits, and km-scale strike extents of prospective geology with 100s of copper showings that allow for multiple camp-scale discoveries.
“A rich exploration and research database exists that, coupled with heads-up field investigations, can be leveraged towards rapid, smart drill target development in a very cost-effective manner.
“Consequent important new copper-silver resources can be confidently developed within a top tier mining jurisdiction.
“Labrador has a track record for supporting new mine and resource sector development projects in partnership with a local indigenous First Nation that is already actively supporting, as well as participating in, other exploration and mining ventures in Labrador.”
Labrador is ranked as one of the top ten mining destinations in the world by the Fraser Institute and is host to several major mines.