Last checked at 27 Jul 2020 07:00
Chesterfield Resources / EPIC: CHF / Market: LSE / Sector: Mining
27 July 2020
Chesterfield Resources Plc
Placing & Subscription to Raise £630,000, appointment of broker, issuance of warrants and share options
Chesterfield Resources Plc is pleased to announce that it has raised £630,000 by way of a conditional placing and subscription of 12,000,000 new ordinary shares at a par value of 0.1p in the capital of the Company, with new and existing shareholders, at a price of 5.25 pence per placing share, a 23% discount to the 5-day volume weighted average share price of 6.85 pence.
The net proceeds of the placing will primarily be used to fund the Company's drill programmes in Cyprus, analysis and follow-up exploration work.
Martin French, Executive Chairman, said: "Early results of our percussion drilling look very promising and we have now decided to expand this programme. With this additional funding we can now also look forward to a comprehensive diamond drill programme this year. The percussion drill and diamond drill programmes are integrated in that the percussion drill is used to locate the deposits and the diamond drill then tests them for grade and more accurately defines intercept width. This top-up share placing dilutes the capital base by just 20% and, as such, we are hopeful that it will quickly be value-accretive for shareholders if the drilling proves successful. We have also issued some incentive options at the same price as the placement. The team has been working hard and this is an opportune time to incentivise them to further build shareholder value. These options are equivalent to 2.6% of the company. We also welcome Fox Davies Capital as our new broker, which has helped bring many new and note-worthy names to the company's share register of longer-term investors via this placing. I look forward to providing further updates to shareholders in due course."
Application for Admission
The placing is subject to the satisfaction of standard conditions contained in a placing agreement with Fox-Davies Capital, including admission of the placing shares to trading occurring on or around 30 July 2020 or such later date as may be agreed between Chesterfield and Fox-Davies Capital (being not later than 7 August 2020). The placing shares will rank pari passu in all respects with the existing ordinary shares of 0.1p in the capital of the company. Application will be made to the London Stock Exchange for the placing shares to be admitted to trading on 30 July 2020.
As a result of the issue of the placing shares as described above, the issued share capital of the Company now consists of 73,933,334 ordinary shares at a par value of 0.1p.
Appointment of Fox-Davies Capital as broker
Chesterfield is also pleased to announce that it has appointed Fox-Davies Capital as its broker, effectively immediately. Fox-Davies Capital will be advising the company on its growth strategy, including corporate development and investor relations.
Broker warrants
In conjunction with the placing, the Company will issue 390,000 warrants to Fox-Davies Capital exercisable into ordinary shares of 0.1p each in the capital of the company at the placing price for a period of five years from closing of the placing. The company will also issue 619,333 warrants to Fox-Davies Capital, exercisable into ordinary shares of 0.1p each in the capital of the Company at a price of 10p per share valid until 16 July 2025.
New Incentive Options and Repricing of Director Options
On the recommendation of the Remuneration Committee, the Board has agreed to issue management and directors with options over a total of 1,935,000 ordinary shares of 0.1p each in the capital of the company. These options will vest immediately and will expire five years from the date of issue with an exercise price of 5.25p.
Name | Position | Number of options granted with an exercise price of £0.0525 |
Martin French | Executive Chairman | 500,000 |
Peter Damouni | Non-Executive Director | 500,000 |
Neil O'Brien | Technical Advisor | 500,000 |
Mike Parker | Managing Director | 250,000 |
David Cliff | Non-Executive Director | 185,000 |
In addition, 1,400,000 options previously granted to Martin French at an exercise price of 11.25p, 465,000 options previously granted to David Cliff at an exercise price of 7.5p and 700,000 options previously granted to Peter Damouni at an exercise price of 7.5p are being repriced to an exercise price of 5.25p. The expiry date of the repriced options is 3 July 2023.
About Chesterfield Resources Plc
Chesterfield Resources is a copper-gold exploration and development company active in Cyprus. The Company strategy is to generate value for shareholders by discovering and developing multiple deposits to production. Chesterfield has commenced an integrated drilling programme on its Troodos West licence area and has a bank of licence areas elsewhere in Cyprus, either granted or under application.
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.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM
1. | Details of the person discharging managerial responsibilities/person closely associated | |||||||
a) | Name: | Martin French | ||||||
2. | Reason for the notification | |||||||
a) | Position/status: | Executive Chairman | ||||||
b) | Initial notification/Amendment: | Initial notification | ||||||
3. | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||
a) | Name: | Chesterfield Resources Plc | ||||||
b) | LEI: | 213800EF8I2TT767IU35 | ||||||
4. | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||||
a) | Description of the financial instrument, type of instrument: Identification code: | Ordinary shares of 0.1 pence GB00BF2F1X78 | ||||||
b) | Nature of the transaction: | Grant of options over ordinary shares | ||||||
c) | Price(s) and volume(s): |
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d) | Aggregated information: Aggregated volume: Price: | Single transaction as in 4 c) above
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e) | Date of the transaction: | 2020-07-26 18:30 hrs UTC | ||||||
f) | Place of the transaction: | Off-market | ||||||
1. | Details of the person discharging managerial responsibilities/person closely associated | |||||||
a) | Name: | Peter Damouni | ||||||
2. | Reason for the notification | |||||||
a) | Position/status: | Non-Executive Director | ||||||
b) | Initial notification/Amendment: | Initial notification | ||||||
3. | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||
a) | Name: | Chesterfield Resources Plc | ||||||
b) | LEI: | 213800EF8I2TT767IU35 | ||||||
4. | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||||
a) | Description of the financial instrument, type of instrument: Identification code: | Ordinary shares of 0.1 pence GB00BF2F1X78 | ||||||
b) | Nature of the transaction: | Grant of options over ordinary shares | ||||||
c) | Price(s) and volume(s): |
| ||||||
d) | Aggregated information: Aggregated volume: Price: | Single transaction as in 4 c) above
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e) | Date of the transaction: | 2020-07-26 18:30 hrs UTC | ||||||
f) | Place of the transaction: | Off-market | ||||||
1. | Details of the person discharging managerial responsibilities/person closely associated | |||||||
a) | Name: | David Cliff | ||||||
2. | Reason for the notification | |||||||
a) | Position/status: | Non-Executive Director | ||||||
b) | Initial notification/Amendment: | Initial notification | ||||||
3. | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||
a) | Name: | Chesterfield Resources Plc | ||||||
b) | LEI: | 213800EF8I2TT767IU35 | ||||||
4. | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||||
a) | Description of the financial instrument, type of instrument: Identification code: | Ordinary shares of 0.1 pence GB00BF2F1X78 | ||||||
b) | Nature of the transaction: | Grant of options over ordinary shares | ||||||
c) | Price(s) and volume(s): |
| ||||||
d) | Aggregated information: Aggregated volume: Price: | Single transaction as in 4 c) above
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e) | Date of the transaction: | 2020-07-26 18:30 hrs UTC | ||||||
f) | Place of the transaction: | Off-market | ||||||
1. | Details of the person discharging managerial responsibilities/person closely associated | |||||
a) | Name: | Mike Parker | ||||
2. | Reason for the notification | |||||
a) | Position/status: | Managing Director | ||||
b) | Initial notification/Amendment: | Initial notification | ||||
3. | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
a) | Name: | Chesterfield Resources Plc | ||||
b) | LEI: | 213800EF8I2TT767IU35 | ||||
4. | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||
a) | Description of the financial instrument, type of instrument: Identification code: | Ordinary shares of 0.1 pence GB00BF2F1X78 | ||||
b) | Nature of the transaction: | Grant of options over ordinary shares | ||||
c) | Price(s) and volume(s): |
| ||||
d) | Aggregated information: Aggregated volume: Price: | Single transaction as in 4 c) above
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e) | Date of the transaction: | 2020-07-26 18:30 hrs UTC | ||||
f) | Place of the transaction: | Off-market | ||||
**ENDS**
For further information, please visit www.chesterfieldresourcesplc.com or contact:
Chesterfield Resources plc: Martin French, Executive Chairman
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Tel: +44 (0)7901 552277 |
Fox-Davies Capital Limited (Broker): Daniel Fox-Davies |
Tel: +44 (0)20 3884 8450 |