Chesterfield Resources PLC (LSE:CHF) shares were up 42% in early trading on Thursday after the company announced a £375,000 fundraise and the partial sale of its investment in Canada’s Sterling Metals.
The mining group said it raised £375,192 through a share subscription by its executive chairman, Kashif Afzal, at 1.2p per share, a 50% premium to the prior closing price.
The new shares, representing about 17% of Chesterfield’s enlarged share capital, will be immediately placed with investors identified by Afzal. Each share comes with a five-year warrant exercisable at 2p.
Alongside the subscription, Chesterfield sold 443,000 shares in Toronto-listed Sterling Metals for roughly C$980,000 (£525,000) following a sharp rise in Sterling’s share price after a major copper discovery.
The company still holds 400,000 shares, which it plans to sell “in an orderly manner.”
Afzal said the funding brought “experienced and committed shareholders,” including investors linked to UAE-based Arowana, whose founder Kevin Chin has backed several listed turnarounds.
He said the additional cash, around £900,000 in total, would enhance Chesterfield’s ability to pursue new opportunities.
The stock rose 0.31p to 1.06p.