Watson Farley & Williams (“WFW”) has advised Standard List client Chesterfield Resources plc (“Chesterfield”) on the strategic investment by Polymetal International Plc (“Polymetal”), the FTSE 100 precious metals mining group, in a 22.5% stake in Chesterfield.
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 , assisted by Trainee Kaajal Shah.
Jan commented: “I am very pleased that we were able to assist Chesterfield on this eye-catching strategic investment by Polymetal. This is a great step for Chesterfield and provides valuable funding for its copper and gold exploration activities in Cyprus. That Chesterfield chose us to help them demonstrates WFW’s standing as a leading law firm for transactions in the mining and commodities sector”.
Martin French, Executive Chairman of Chesterfield Resources said: “We are delighted to have attracted the investment of a tier-one mining company of the stature of Polymetal. We are an ambitious young company and this strategic investment represents an important step in our growth trajectory. We greatly look forward to working with Polymetal to build value for it, and all of our shareholders who have joined us in our venture. We are very grateful to Jan and his WFW team for assisting us in executing this transaction to a tight timetable with the right balance of legal know-how and commercial awareness”.