Chesterfield Resources plc has signed a new agreement to sell full ownership and rights over its Adeline copper project in Canada.
TERMS
The company had previously signed a conditional deal with Pacton Gold Inc which withdrew because of the “immense size” of the project.
Today’s announced agreement will see Sterling Metals purchase an option for the acquisition in exchange shares and a series of cash payments to Chesterfield.
“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,” said Chesterfield in a statement.
Sterling will pay a total of CA$800,000 (£490,000) in three separate payments of CA$100,000 (£62,250) immediately, CA$300,000 (£183,750) following receipt of regulatory permission to complete the deal, and a final CA$400,000 (£230,000) to be paid on or before 30 November 2024.
Sterling will also issue a total of 9 million shares to Chesterfield in two equal lots of 4.5m in two tranches.
The first tranche will follow completion of the transaction and the second on or before 30 November 2024.
VALUE
“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,” added executive chairman Paul Ensor.
“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.”