Chesterfield Resources plc said it had completed the initial round of cost efficiencies to minimise the need for dilutive capital raisings.
REDUCTIONS
The company previously stated it hoped to source the capital from non-dilutive external sources for the development of its Adeline copper project in Labrador, Canada.
Chesterfield today added it expected to reduce “ongoing monthly cash outgoings” by more than 50% in the months ahead.
The company has also cut the board’s aggregate compensation by 50% as part of the efficiency drive.
“As a result of these savings and in the absence of any unforeseen events, the board does not expect to undertake any dilutive equity offerings for the remainder of 2022, and the ambition is for that to extend well into 2023,” said Chesterfield in statement.
VALUE
Executive chairman Paul Ensor added that a strong team was driving the company during an important time.
“Our initial goal is to move as quickly as possible to realise value for our shareholders through potential agreements with third parties with regard to our Canadian assets, while at the same time rationalising and consolidating our licences in Cyprus.
“Our overriding concern throughout will be to enhance shareholder value and avoid unnecessary dilution.”