Chesterfield R. Regulatory News (CHF)

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

14 January 2021

Exercise of Warrants and Issue of Equity

Chesterfield Resources plc announces that it has received notifications from warrant holders to exercise warrants over 200,000 new ordinary shares of 0.1 pence each in the share capital of the Company (the 'New Ordinary Shares') at a price of 5 pence per share. Accordingly the Company has today issued the New Ordinary Shares to the warrant holders for an aggregate cash value of £10,000.

Application has been made for the New Ordinary Shares to be admitted to trading on the Main Market of the London Stock Exchange ('Admission'). Admission is expected to occur on or around Tuesday 19 January 2021.

Total voting rights

On Admission, the Company's issued share capital will consist of 101,911,112 ordinary shares and a total of 2,000,000 deferred shares (the deferred shares of the Company are not traded and no application will be made for such shares to be admitted to trading on the Main Market of the London Stock Exchange). The Company does not hold any Ordinary Shares in Treasury. The total voting rights from Admission will therefore be 101,911,112 ordinary shares. This figure above may be used by shareholders as from 19 January 2021 as the denominator for the calculations by which they determine if they are required to notify their interest in, or change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

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About Chesterfield Resources 

Chesterfield Resources is a copper-gold exploration company active in Cyprus, where it holds the largest mineral exploration licence area of any operator on the island. Polymetal International, the FTSE100 mining group, recently announced it had taken a 23% strategic investment in Chesterfield via a placing of new shares, and has appointed a director to the board.

Cyprus is regarded as a good quality exploration location. It is a member of the EU, and its legal system is based on English common law. There has been minimal exploration activity on the island in the last 46 years since the invasion by Turkey in 1974 put a halt to what had been a very active mining industry. 

Since that time, exploration technology and geological knowledge has improved significantly. The company is exploring for VMS (Volcanognic Massive Sulphide) deposits, which typically occur in stacks and clusters. Historically only those deposits which were visible from surface have been mined. It is believed that many more deposits remain undiscovered buried near surface, and the company is using modern techniques to locate them. 

While copper is the main exploration target, it is noteworthy that gold was not historically exploited in Cyprus as its price was pegged to just $35 per ounce when the mining industry was active in the 1960s and 1970s (less than 50 times today's price). Gold has been encountered in several locations in the exploration target area and is an important part of the exploration objective. 

The exploration team is led by two senior geologists: Neil O'Brien, formally Head of Exploration, Lundin Mining, Dave Cliff, previously Head of Exploration Europe, Rio Tinto, assisted by Mike Parker, previously a geologist with First Quantum Mining 

The current focus of exploration is in the Troodos West group of licences belonging to the company, with around 30 defined targets in an area measuring 10km by 10km. The objective is to discover several VMS deposits in close proximity to each other to create a mining project with a centralised processing unit. 

The company is current awaiting results from its late season 2020 drilling campaign. These will be used for targeting an enlarged 2021 geophysics, percussion and diamond drilling exploration campaign which is currently under planning.

Chesterfield Resources is committed to world-class environmental standards in all of its operations to mine copper, which is essential to developing clean technology projects worldwide. The company hopes to develop industry and opportunities for the benefit of the Republic of Cyprus. 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

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