Watson Farley & Williams has advised Chesterfield Resources plc on the deal.
Polymetal is investing £2.1m for the 22.5% stake in Chesterfield, subject to publication of a prospectus. Chesterfield and Polymetal have entered into a relationship agreement that envisages granting one board seat to a Polymetal representative and will continue for as long as the Polymetal group maintains an interest of more than 15% of the company’s voting rights.
Chesterfield is currently completing its first pass diamond drilling and geophysics exploration campaign on its licence district at Troodos West in Cyprus. This financing will fund its next phase of exploration. The company is planning geophysics surveys over the winter, with a renewed campaign of diamond drilling in the second quarter of 2021.
Polymetal is one of the ten largest gold mining companies in the world with a market capitalisation of approximately £7.4bn. This is in line with Polymetal’s current strategy to invest in junior mining companies in its regions of operation and increase its exposure to copper. Chesterfield is a copper and gold exploration company focussed on Cyprus.
The WFW team advising Chesterfield was led by London-based Global Mining & Commodities Sector Head Jan Mellmann (Picture), assisted by Trainee Kaajal Shah.
Involved fees earner: Jan Mellmann – Watson Farley & Williams;
Law Firms: Watson Farley & Williams;
Clients: Chesterfield Resources plc;