LONDON: Chesterfield Resources will acquire a belt scale copper exploration project, called Adeline, in the highly-rated Labrador region of eastern Canada, a news release said.
Chesterfield has entered into a share purchase agreement with Altius in which Altius has agreed to sell the entire issued share capital of a special purpose vehicle (SPV), which in turn owns a 100% interest in the Adeline copper project, to Chesterfield.
The consideration for the share purchase will be satisfied by Chesterfield’s issue to Altius of (i) 10,089,199 ordinary shares in the capital of Chesterfield and (ii) warrants over 11,100,000 Ordinary Shares, exercisable for three years from completion at an exercise price of £0.20 per new Ordinary Share.
Under the Share Purchase Agreement, Chesterfield agrees that it will spend C$250,000 (£146,185) on the Adeline copper project within 18 months following the date of the Share Purchase Agreement and an additional C$750,000 (£438,554) within a further 12 months.
Altius has also applied for some additional claims on the project periphery which it will transfer to the SPV at Chesterfield’s request at cost if granted.
The project is close to the regional service hub of Goose Bay, and in range of major road and rail infrastructure to the coast. The vendor, Altius Minerals Corporation will become a strategic partner and help manage the project.
Said Martin French, Executive Chairman, “The Adeline project is an outstanding acquisition for Chesterfield. It is highly unusual to secure and be able to explore an entire copper belt in a top-tier jurisdiction. The project has the potential for a world-class discovery.
We have taken a strategic decision to greatly increase our global footprint of high quality copper exploration assets. Our objective is to be positioned as a leading copper exploration and resource development company to help supply the surging global demand for electrification.
Expansion into Canada is a natural fit for Chesterfield. The company was co-founded by a Canadian and retains a core group of Canadian shareholders. Our Director of Exploration, Dr Neil O’Brien, is a Canadian and is based near Toronto. The acquisition complements well our copper exploration project in Cyprus. Flight time between London and St John’s, Newfoundland is similar to Cyprus, and like Cyprus, Labrador is an excellent mining location, with good regulation, legal codes and infrastructure.”
In recent months we have significantly bolstered the team at Chesterfield in anticipation of expansion. Initial expenditure obligations at Adeline are easily manageable within our current cash reserves. We are also very pleased to welcome Altius as a strategic partner. Altius is a highly regarded and successful mining group in Canada and expert in Labrador, being head quartered in St John’s. Altius is helping us design and manage the initial phase of exploration, of which there will be more news soon.”
Said Neil O’Brien, Director of Exploration “Adeline is an excellent entry point to a mid-stage exploration project covering an entire sediment-hosted copper belt. Previous work has clearly demonstrated its potential for important new copper discoveries with significant silver credits. There are distinct similarities to many of the world’s great sediment-hosted copper deposits and belts including very rich copper ore mineralogy, efficient metal traps needed to form economic copper-silver deposits, and km-scale strike extents of prospective geology with 100’s of copper showings that allow for multiple camp-scale discoveries.
A rich exploration and research database exists that, coupled with heads-up field investigations, can be leveraged towards rapid, smart drill target development in a very cost-effective manner. Consequent important new copper-silver resources can be confidently developed within a top tier mining jurisdiction. Labrador has a track record for supporting new mine and resource sector development projects in partnership with a local indigenous First Nation that is already actively supporting, as well as participating in, other exploration and mining ventures in Labrador.
The Adeline copper-silver project is located within the western half of the Central Mineral Belt, a 260 km long, metal-rich geological terrane located in Central Labrador, eastern Canada. The property is comprised of five contiguous mineral licenses totalling 129.3 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.
The project is similar in scale to the renowned Chambisi basin on the Zambian Copperbelt and shares key geological attributes with the giant sediment-hosted copper-silver deposits at Udokan, Russia (1.4Bt @ 1.05%Cu, 10 g/t Ag) and the Keweenawan Copperbelt, Michigan (historic production of 7.3Mt copper) as well as copper deposits across the Zambian Copperbelt. The Adeline property is close to the regional service hub of Goose Bay, and within range of major road and rail infrastructure to the coast, some of which was built specifically for mining projects including the large iron ore mines of Labrador.
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18 May, 4:10 pm GMT+1 · Disclaimer
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