Cyprus-based copper and gold exploration and development company Chesterfield Resources has raised £630 000 by way of a conditional placing and subscription of 12-million new ordinary shares.
The shares are at a par value of 0.1p in the capital of the company, with new and existing shareholders at a price of 5.25p per placing share, a 23% discount to the five-day volume weighted average share price of 6.85p.
These options are equivalent to 2.6% of the company's shares in issue.
The net proceeds of the placing will primarily be used to fund Chesterfield’s drill programmes, analysis and follow-up exploration work in Cyprus.
Executive chairperson Martin French says early results of the company’s percussion drilling appear promising and the company has now decided to expand this programme. “With this additional funding we can now also look forward to a comprehensive diamond drill programme this year.”
He adds that 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,” says French.
Chesterfield has 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,” French says.
In addition, the company has appointed Fox Davies Capital as its new broker, helping bring many new and noteworthy names to the company's share register of longer-term investors through this placing.
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 July 30 or such later date as may be agreed between Chesterfield and Fox Davies Capital.