The share price of little-known Chesterfield Resources (LON: CHF) soared by over 30 percent as FTSE 100 miner Polymetal took a 22.5% stake in the company.
With Polymetal’s m. cap at over £7bn, the £2.1m investment into CHF was seen as a very promising sign into the prospects of CHF who is a copper and gold exploration company with a focus on Cyprus.
And Polymetal was already looking at an excellent paper gain on its investment – as the share price soared from 9p to 14p.
With shares in CHF starting the year at 3p – today’s rise puts it well and truly into multi-bagger territory. With a m. cap of £10m – investors including Polymetal will be hoping there’s plenty more left in the tank!
“We are delighted to have attracted the investment of a tier-one mining company of the stature of Polymetal International. 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.”Martin French, Executive Chairman of Chesterfield Resources
Polymetal is now the largest shareholder in Chesterfield as well as a strategic partner.