TIDMCHF
RNS Number : 5861X
Chesterfield Resources PLC
30 April 2019
Chesterfield Resources / EPIC: CHF / Market: LSE / Sector:
Mining
30 April 2019
Chesterfield Resources Plc (the 'Company', 'Chesterfield')
Final Results, Notice of AGM and Director Resignation
Chesterfield Resources plc is pleased to announce its final
results for the year ended 31 December 2018.
FINAL RESULTS
Chairman's Statement
"Chesterfield Resources plc has made significant progress in its
operations since the last Chairman's letter to shareholders, a
little over six months ago.
By way of recap, in July 2018 Chesterfield re-admitted as a
Standard Listing on the main board of the London Stock Exchange.
This was to effect an acquisition of HKP Exploration Limited, which
held a number of mineral exploration licences in the Republic of
Cyprus. In the third quarter of 2018 the Group commenced a
preliminary drill campaign on a number of targets namely Evloimeni,
Mavroyi, Magouda, Double Seven and Ayia Saranta.
Progress report for the last six months
The Company completed 3,097m of its drilling campaign in the
last quarter of 2018 on several targets in its Troodos West
Exploration area. From a preliminary analysis of core, the Board of
Directors took a decision to greatly expand the Group's land
package in Cyprus. There were numerous intersections of 1-2% Cu and
also a surprising amount of gold, with many intersections assaying
at 1-2g per tonne. There was a geological surprise also, with the
discovery of more recent epithermal systems alongside the
well-established Cyprus-type Volcanogenic Massive Sulphide ("VMS")
mineralization. This means that copper-gold+/-zinc mineralisation
can be hosted in two different types of system
The operations team was asked to focus its attention on
identifying new minerals rights land packages for the Group to
apply for. Because the permits were available directly from the
authorities in Cyprus they were relatively inexpensive and easy to
acquire. Thus, it made sense to secure first mover advantage by
submitting applications over the most promising licence areas still
available. The programme of new land applications was completed at
the end of February 2019, almost quadrupling the Group's total land
position to 237 km(2) . This made Chesterfield by far the largest
holder of mineral rights in Cyprus. The new licence areas expanded
the Group's position along both the northern and southern flanks of
the Troodos mountains in the most prospective volcanic belt.
In addition, more prospecting permits were also granted on the
Group's existing batch of applications at Troodos North. I am
pleased to report the current portfolio of approved prospecting
permits now totals more than 50 km(2) .
In order to run this significantly expanded exploration
programme, the Group recruited Mike Parker as Chief Operating
Officer in January 2019. Mike brings a huge amount of experience to
Chesterfield. Prior to joining our Group, Mike had a 20-year career
for First Quantum. He was a key player in making two major copper
discoveries for First Quantum and was its Country Manager for DRC
and then Peru.
To provide a first sweep of our greatly enlarged exploration
area, we commissioned a remote sensing survey, using both the Astra
and the Sentinel 2 satellite platforms. The survey uses both high
resolution satellite photography and also data from the non-visible
spectrum using specially calibrated satellite sensors. The survey
is able to identify geological faults that may control
mineralization and associated rock alterations due to hydrothermal
activity. The satellite data was interpreted using a specialist
company in the US. It has allowed us to rapidly reduce our search
areas to a number of specific targets, which would otherwise have
taken many of months of field work on the ground. The survey has
also identified targets outside of our exploration licence areas
and, as a result, we may submit applications for further
licences.
The Group has built a strong field team in Cyprus. This includes
three graduates from Camborne School of Mines (CSM). We are pleased
to have built a good relationship with one of the premier mining
schools in the UK. We recently hosted a field visit in Cyprus for
CSM's third year students and will shortly be taking in two of its
Master's students on internships in Cyprus. It is important to us
that we are well integrated into the local community. We now have
employ four part-time Cypriot geologists on the team, have good
relationship with the Mine Services department and we also employ
contractors from the villages we operate around.
The team has been involved in an intensive period of data
collection over the last few months. There is a very large volume
of historical data in Cyprus, both from the period of mining in the
1960s and 1970s, and various exploration and study projects since.
Sifting through this and digitising the most relevant information
has been a meticulous but rewarding process. The team has spent
much time in the field mapping and sampling the areas of greatest
interest. The various layers of information are being collated into
the Group's geographic information system (GIS).
We have also made some corporate changes in Cyprus. PKF Savvides
& Co Ltd have been appointed as our local auditors, Hive
Management Services Ltd has been appointed as our in-country
accountants, and we have changed the name of HKP Exploration
Limited to CRC Chesterfield Chesterfield Resources (Cyprus)
Limited.
We are looking forward to an active period ahead. The operations
team has been conducting intensive field studies on several targets
which we will shortly be further investigating using geophysics.
The Group has a diamond drill in storage at our core shed in Cyprus
and we expect to be drilling again soon. We have been careful to
ensure we have completed detailed examination of each target before
moving onto the most costly process of drill testing of
targets.
Outside of the exploration there are a number of other
opportunities that the Group is investigating that could yield
near-term revenue potential. It is our intention to grow the
business through joint ventures and new projects as these
opportunities arise.
Having worked hard to build our land position in Cyprus,
operations team and data sets, the Group now has a strong target
list in final stages of preparation. We now also feel in a position
to start releasing information regarding the Group's operations and
prospects more actively to the stock market. The shares are
becoming more actively traded and the price stronger. We will be
using various channels of communication to raise the profile of the
Group. This will be accompanied by a more professional web site and
revamped presentation. Chesterfield is entering an exciting phase
of its growth and I look forward to bringing you regular news over
coming weeks and months.
Director's Resignation
David Hall, one of our directors, has decided not to stand for
re-election this year. David is involved in a number of different
junior resource projects, both listed and unlisted. Having helped
shape our venture in Cyprus, he has now found many demands on his
busy schedule. We would like to thank him for his hard work and
wish him the best of luck.
Financial Review
The loss before taxation of the Group for the year ended 31
December 2018 amounted to GBP689,367 (period ended 31 December
2017: GBP111,012).
The Group's cash position at 31 December 2018 was GBP1,885,726
(2017: GBP1,184,424).
In July 2018 the group raised GBP2,000,000 by issuing 26,666,667
new ordinary shares of 0.1 pence at a price of 7.5 pence per share.
The funds raised is to primarily support the continued exploration
of various license areas in Cyprus.
Outlook
I would like to thank our shareholders for their support, we are
lucky to have a strong and supportive base of investors and we hope
that the coming months and years will continue to be value
accretive for all our stakeholders."
Group Statement Of Comprehensive Income
For the year ended 31 December 2018
31 December 31 December
2018 2017
Continuing operations GBP GBP
--------------------------------------------------- ------------ ------------
Administrative expenses (689,367) (111,012)
Operating Loss (689,367) (111,012)
--------------------------------------------------- ------------ ------------
Loss before taxation (689,367) (111,012)
--------------------------------------------------- ------------ ------------
Income tax - -
Loss for the Period attributable to owners
of the parent (689,367) (111,012)
Basic and Diluted Earnings Per Share attributable
to owners of the parent (expressed in pence
per share) (1.524) (1.01)
--------------------------------------------------- ------------ ------------
31 December 31 December
2018 2017
GBP GBP
--------------------------------------------- ------------ ------------
Loss for the period (689,367) (111,012)
Other Comprehensive Income:
Items that may be subsequently reclassified
to profit or loss
Currency translation differences 6,181 -
--------------------------------------------- ------------ ------------
Other comprehensive income for the period,
net of tax (6,181) -
--------------------------------------------- ------------ ------------
Total Comprehensive Income attributable to
owners of the parent (683,186) (111,012)
--------------------------------------------- ------------ ------------
Statement of Financial Position
For the year ended 31 December 2018
31 December
31 December 2018 2017
GBP GBP
-------------------------------------- ----------------- ------------
Non-Current Assets
Property, plant and equipment 13,891 -
Intangible assets 1,156,429 -
Investments in subsidiaries - -
1,170,320 -
-------------------------------------- ----------------- ------------
Current Assets
Trade and other receivables 77,067 44,683
Cash and cash equivalents 1,885,726 1,184,424
-------------------------------------- ----------------- ------------
1,962,793 1,229,107
-------------------------------------- ----------------- ------------
Total Assets 3,133,113 1,229,107
-------------------------------------- ----------------- ------------
Non-Current Liabilities
Deferred tax liabilities (127,450) -
(127,450) -
Current Liabilities
Trade and other payables (89,138) (51,286)
Total Liabilities (216,588) (51,286)
-------------------------------------- ----------------- ------------
Net Assets 2,916,525 1,177,821
-------------------------------------- ----------------- ------------
Equity attributable to owners of the
Parent
Share capital 159,933 126,600
Share premium 3,534,597 1,157,873
Other reserves 22,374 4,360
Retained losses (800,379) (111,012)
-------------------------------------- ----------------- ------------
Total Equity 2,916,525 1,177,821
-------------------------------------- ----------------- ------------
Group Statement of Changes in Equity
For the year ended 31 December 2018
Attributable to owners of the Parent
------------------------------------------------------
Share Retained
capital Share premium Other reserves losses Total
GBP GBP GBP GBP GBP
---------
Balance on Incorporation
on 4 January 2017 - - - - -
---------------------------- --------- -------------- --------------- ---------- ----------
Loss for the period - - - (111,012) (111,012)
Other comprehensive
income for the period
Items that may be
subsequently reclassified
to profit or loss
Currency translation
differences - - - - -
---------------------------- --------- -------------- --------------- ---------- ----------
Total comprehensive
income for the period - - - (111,012) (111,012)
---------------------------- --------- -------------- --------------- ---------- ----------
Proceeds from share
issues 126,600 1,274,000 - - 1,400,600
Issue costs - (116,127) - - (116,127)
Share based payments - - 4,360 - 4,360
Total transactions
with owners, recognised
directly in equity 126,600 1,157,873 4,360 - 1,288,833
Balance as at 31
December 2017* 126,600 1,157,873 4,360 (111,012) 1,177,821
---------------------------- --------- -------------- --------------- ---------- ----------
Balance as at 1
January 2018 126,600 1,157,873 4,360 (111,012) 1,177,821
---------------------------- --------- -------------- --------------- ---------- ----------
Loss for the period - - - (689,367) (689,367)
Other comprehensive
income for the period
Items that may be
subsequently reclassified
to profit or loss
Currency translation
differences - - 6,181 - 6,181
Total comprehensive
income for the period - - 6,181 (689,367) (683,186)
Proceeds from share
issues 26,666 1,973,334 - - 2,000,000
Issue costs - (89,943) - - (89,943)
Share based payment - - 11,833 - 11,833
Shares issued on
business combination 6,667 493,333 - - 500,000
Total transactions
with owners, recognised
directly in equity 33,333 2,376,724 11,833 - 2,421,890
---------------------------- --------- -------------- --------------- ---------- ----------
Balance as at 31
December 2018 159,933 3,534,597 22,374 (800,379) 2,916,525
---------------------------- --------- -------------- --------------- ---------- ----------
Group Statement of Cash Flows
For the year ended 31 December 2018
Year ended Period ended
31 December 31 December
2018 2017
GBP GBP
---------------------------------------------- ----------------- -------------
Cash flows from operating activities
Loss before income tax (689,367) (111,012)
Adjustments for:
Depreciation and amortisation 2,864 -
Share options expense 11,833 4,360
Intercompany charges - -
Foreign exchange 6,158 -
(Increase)/Decrease in trade and receivables 17,350 (44,683)
Increase/(Decrease) in trade and payables (56,946) 51,286
Net cash used in operating activities (708,108) (100,049)
---------------------------------------------- ----------------- -------------
Cash flows from investing activities
Cash acquired upon acquisition 1,744 -
Interest received - -
Purchase of property plant and equipment (16,755) -
Loans granted to subsidiary undertakings - -
Exploration and evaluation activities (485,636) -
---------------------------------------------- ----------------- -------------
Net cash used in investing activities (500,647) -
---------------------------------------------- ----------------- -------------
Cash flows from financing activities
Proceeds from issue of share capital 2,000,000 1,400,600
Transaction costs of share issue (89,943) (116,127)
Net cash generated from financing activities 1,910,057 1,284,473
---------------------------------------------- ----------------- -------------
Net increase in cash and cash equivalents 701,302 1,184,424
Cash and cash equivalents at beginning
of period 1,184,424 -
Exchange gain on cash and cash equivalents - -
---------------------------------------------- ----------------- -------------
Cash and cash equivalents at end of
period 1,885,726 1,184,424
---------------------------------------------- ----------------- -------------
DIRECTOR RESIGNATION
Non-Executive Director David Hall has today announced his
intention to resign from the Board to focus on his other business
interests. His resignation will come into effect following the
Company's AGM. The Board would like to thank David for his
contributions to the Company.
NOTICE OF AGM
The Company also gives notice that its Annual General Meeting
('AGM') will be held on June 5th at 11am. at The Washington Mayfair
Hotel, 5 Curzon Street, London, W1J 5HE.
Copies of the Notice of AGM, together with the Form of Proxy and
the Annual Report will be posted today to shareholders and will be
available to view on the Company's website at
www.chesterfieldresourcesplc.com
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About Chesterfield Resources Plc
Chesterfield Resources is a copper-gold exploration and
development Company active in Cyprus. The Company generates value
for shareholders by discovering and developing multiple deposits to
production. Chesterfield is currently progressing its Cyprus
Project.
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.
**ENDS**
For further information, please visit
www.chesterfieldresourcesplc.com or contact:
Chesterfield Resources plc:
Martin French, Executive Chairman Tel: +44 (0) 7901 552277
Shard Capital (Broker):
Damon Heath Tel: +44 (0) 20 7186 9952
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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