Chesterfield Resources plc has reached a deal to complete the sale of the Adeline copper project in Labrador, eastern Canada.
OPPORTUNITIES
Under the original March 2023 agreement, Sterling Metals will acquire Adeline in exchange for a combination of cash and shares in Sterling.
Part payment was issued to Chesterfield in 2023 with the balance due in late 2024 in the event Sterling decided to exercise their option.
Both parties have now committed to complete the sale by 30 June for C$200,000 cash (£115,000) and the issue of an additional 8.5 million Sterling shares to Chesterfield.
Chesterfield will hold a total 12,692,000 shares in Sterling, representing a 5.46% stake in the company.
Chesterfield said it would now evaluate exploration plans in Cyprus as well as “additional opportunities” with the increased non-dilutive funding.
Executive chairman Kashif Afzal added that the deal removed uncertainty and exposure to future liability and dilution from exploration costs, while benefiting from any success at Adeline and Sterling’s other projects.
“We have been impressed by the progress Sterling have made since our initial agreement with them last year, and we are confident that it is in a strong position to generate additional value for shareholders in 2024 and beyond.
“Further, our enhanced financial resources will allow us to look at our prospective licences in Cyprus with a different perspective and to also continue our search for new opportunities with greater financial strength. “