Placing and Subscription

RNS Number : 0881B
Chesterfield Resources PLC
09 February 2022
 

Chesterfield Resources / EPIC: CHF / Market: LSE / Sector: Mining

 

9 February 2022

Placing and subscription to raise £700,000, grant of warrants and board change

 

Chesterfield Resources plc ('Chesterfield' or the 'Company') is pleased to announce it has raised £700,000 by way of a placing and subscription  of 10,000,000 new Ordinary Shares of 0.1 pence each at a price of 7 pence per share. (the "Placing Shares").

 

Further, each two Placing Shares will have one warrant attached, exercisable at 12p per Ordinary Share for the period of 24 months from the date of admission of the Placing Shares (the "Placing Warrants"). If at any time during the warrant exercise period the 10-day volume-weighted average price (VWAP) of the Company's Ordinary Shares exceeds 20 pence per share then the Company may give warrant holders notice ("Company Notice") to exercise their warrants. If Company Notice occurs, any warrants which are not exercised shall be deemed to have expired without having been duly exercised prior to their expiration date and accordingly shall be forfeited by the warrant holder without any right of compensation or substitution whatsoever. 

 

The use of proceeds from the placing  will primarily be used for exploration, working capital and to pay for the costs associated with seeking a secondary listing on the  TSX-V .

 

In addition, Peter Damouni is stepping off the Board with immediate effect on 8 February 2022, due to increasing demands on his time. Peter will however remain as an advisor to Chesterfield.

 

Said Executive Chairman Martin French "The company has a busy six months ahead. Last month we reported very encouraging results from our field programme and data review in Labrador. This included remodelling a substantial historical database of geophysics work, as well as extensive sampling. The results of these workstreams are now being combined to identify a series of ranked exploration targets, with detailed design for a forthcoming diamond drill campaign in the summer.

 

In Cyprus planning is underway for additional drilling on our Westline gold system, which yielded strong results announced in December, as well as further exploration on our Limni South gold oxide project. In addition, our field geologists are planning a methodical mapping and sampling campaign to test the prospectivity of several promising licence blocks among our 95 KM2 property holding. We will be announcing more detail of these various workstreams over coming weeks.

 

We are also rolling out a corporate strategy in North America to build strong new investor bases for our stock. We are well advanced on a NI 43-101 report on our Adeline project in Labrador to be used for an application for a secondary listing on the TSX-V exchange. We expect the application to be submitted within weeks. We have also recently appointed a well-respected broker in Canada, Laurentian Bank Securities. In the United States we will be applying for an OTC QB listing, and have recently appointed Amvest Capital of New York, a specialist natural resources house, to represent us there. We have a busy programme of webinars and other functions with US investors which commenced last month.

 

 

Peter Damouni is stepping off our board as he has taken on a senior executive function elsewhere. However, Peter remains a strong supporter of our vision and has invested £100,000 in Chesterfield in this funding round. He will continue to be closely associated with the company as an advisor. We thank Peter for his very effective service as a director."

 

Application for Admission

 

The new ordinary shares to be issued pursuant to the Placing will represent  8.3  per cent of the issued ordinary share capital of the Company prior to the Placing. The Company will apply for admission of the Placing Shares to listing on the standard listing segment of the Official List of the  FCA and to trading on the main market for listed securities of the London Stock Exchange . The Placing Shares will rank pari passu in all respects with the existing ordinary shares of 0.1p in the capital of the Company.  The Placing Shares are expected to be admitted for trading on or around 16 February 2021.

 

In accordance with the provision of the Disclosure Guidance and Transparency Rules of the  FCA ("DTRs"), the Company confirms that, following admission, its issued share capital will comprise 130,328,311 Ordinary Shares, each of which carries the right to vote, with no Ordinary Shares held in treasury. This figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the DTRs

 

Broker warrants

 

In conjunction with the placing, and in addition to the Placing Warrants, the Company will issue up to 5,160 warrants to various parties exercisable into Ordinary Shares of 0.1 pence each in the capit5al of the Company at a price of 7pfor a period of two years from the date of admission. 

 

The Directors of the Company accept responsibility for the contents of this announcement.

 

**ENDS**

 For further information, please visit  www.chesterfieldresourcesplc.com  or contact:

 

Chesterfield Resources plc:

Martin French, Executive Chairman    Tel:  +44(0) 7901 552277

 

Panmure Gordon (UK) Limited (Joint Broker):   Tel:  +44 (0)207 886 2500

John Prior & Hugh Rich

 

First Equity Limited (Joint Broker)  Tel:  +44 (0)207 330 118

Jason Robertson

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCFFFVFFDITIIF
UK 100

Latest directors dealings