Watson Farley & Williams has advised Chesterfield Resources Plc on its placing and completion of its acquisition of the belt scale Adeline copper exploration project.
Completion of the placing and the acquisition were both conditional upon, among other things, approval of a Chesterfield prospectus which was issued on 7 July 2021.
Panmure Gordon (UK) Limited acted as sole bookrunner in relation to the placing, which was conducted through an accelerated bookbuild process.
Chesterfield acquired the Adeline project via the purchase of the entire issued share capital of the SPV which owns the project. The consideration was satisfied by Chesterfield’s issue to Altius of (i) 10,089,199 ordinary shares in its capital and (ii) warrants over 11,100,000 ordinary shares, exercisable for three years from completion at an exercise price of £0.20 per share. Under the share purchase agreement, Chesterfield has agreed to spend C$250,000 (£146,185) on the Adeline project within the first 18 months and an additional C$750,000 (£438,554) within a further 12 months. Chesterfield and Altius have also entered into a relationship agreement and a technical services agreement.
The Adeline project is located within the western half of Labrador’s Central Mineral Belt, a 260 km long, metal-rich geological terrane. The property comprises ten contiguous mineral licenses totalling 297.3 km2, covering the full extent of the Seal Lake basin, a nearly 40 km long by 10 km wide geological structure which contains some 250 copper prospects. It is close to the regional service hub of Goose Bay and to major road and rail infrastructure giving access to the coast.
Listed on the London Stock Exchange, Chesterfield is a mining exploration company with a previous focus on copper and gold extraction in Cyprus. Altius is a well-regarded and successful exploration project generator and royalty company listed on the TSX (ALS.TO) with a market capitalisation of approximately C$710m.
The WFW London team advising Chesterfield was led by London-based Global Mining & Commodities Sector Head Jan Mellmann (Picture), assisted by corporate Associate Clementine Freeth and Trainee Sarika Parmar.
Law Firms: Watson Farley & Williams;
Clients: Chesterfield Resources plc;