Chesterfield Resources plc said it was making progress “on all fronts” in the conditional sale of its 100% interest in the Adeline copper licences in the Labrador region of eastern Canada.
AGREEMENT
The company purchased the assets from Altius Minerals in May 2021 before increasing the licence area the following month.
In October 2022, Chesterfield entered into an agreement with Canadian exploration company Pacton Gold Inc, conditional upon regulatory approvals and a successful equity raise by Pacton.
Chesterfield said it expected that Adeline would develop quicker than if it pursued funding and conducted the work on its own.
TERMS
The sale will be in exchange for a combination of cash and shares in Pacton, giving Chesterfield a seat on Pacton’s board and active participation in developing the Adeline project.
Chesterfield will receive from Pacton a total of CAD1.25m (£804,000) in staged payments over a period of 12 months.
The company will also advise Pacton for a defined handover period post completion and will receive additional compensation of CAD300,000 (£193,000) for work during the transition period.