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Nov. 26, 2020, 3:07 a.m. EST

Polymetal to buy 22.5% stake in Cypriot miner

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By Jaime Llinares Taboada

Chesterfield Resources PLC said Thursday that Polymetal International PLC has agreed to buy a 22.5% stake in the company through a 2.1 million pound ($2.8 million) investment.

Chesterfield, a Cyprus-focused copper and gold miner, will issue 23.3 million shares to Polymetal at a price of 9 pence each, representing a 16% discount to the 10.75 pence closing price on Wednesday.

Following the investment, Polymetal will be the largest shareholder in Chesterfield. Both companies have also signed a relationship agreement to govern their partnership, Chesterfield said.

Chesterfield said it is raising an additional GBP400,000 via a private share placement, also at a price of 9 pence per share. The company, which is currently completing a drilling and geophysics exploration campaign at its Troodos West project in Cyprus, said the money will be used to fund the next phase of exploration.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

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