RE: CHF is a Sleeping giant....5 Dec 2022 08:47
Under the terms of the agreement, Chesterfield's Canadian subsidiary Chesterfield (Canada) Inc. will sell its 100% interest in its Adeline licences to Pacton in exchange for a combination of cash and shares in Pacton. As a result Chesterfield (Canada) Inc. will become a significant shareholder in Pacton, obtain a seat on Pacton's board and will actively participate in the development of the Adeline project. Chesterfield's board anticipates that the development of the Adeline project will therefore be able to progress much more quickly and effectively than would have been the case had Chesterfield pursued the funding and carried out this work on its own. Chesterfield shareholders will continue to have exposure to any discovery at Adeline through Chesterfield (Canada) Inc's 19.99% post funding dilution stake in Pacton. For reference, Pacton is currently valued at CAD12.99m (£8.4m). Chesterfield's ability to sell its shares in Pacton will be restricted according to certain terms detailed in the agreement and all payments are subject to potential tax liability in Canada.