Chesterfield Resources plc said it planned to surrender some of its Cyprus licences over the next six months to reduce unnecessary spending and potential shareholder dilution.
COSTS
The company added it would continue to advance its “most highly prospective” retained Westline and Orchard core assets.
Chesterfield will reduce its Cyprus portfolio from 26 licences covering 110.42 km2 to three licences, AE4664, AE4672 and AE4673, covering 13.39 km2.
The move also reduces costs payable to renew the licences likely to be of less interest.
Work will continue on a licence group of three areas close together, with two adjoining, on the Westline Trend, a “highly prospective mineral trend” containing the Westline and Orchard areas in West Troodos.
The company also plans more drilling for 2023 to continue testing the mineralised system for massive sulphide with potential “in all directions”.
The scope and timing of the plans depend on the sale of the Adeline copper project in Canada and market conditions.
Chesterfield said it would also consider a joint venture or direct investment in the Cyprus licences.
“We are excited by the potential for additional exploration in 2023 in the properties that we are retaining and the decision to reduce our portfolio overall will make it easier for us to devote the resources to them that they deserve,” added chief executive Paul Ensor.
“Before giving up these extensive non-core properties we had more licences than we could possibly explore, with a considerable and potentially growing holding cost and required expenditures in the near future.”