14 April 2011
Widespread Energy Ltd has today changed its name and become Chatham Rock Phosphate Ltd.
The name change reflects shareholder approval to acquire 100 per cent of the Chatham Rock Phosphate project, through the exchange of the 10 percent of the project previously held by Widespread Portfolios for some energy assets and an increase in shareholding from 20 to 26 percent. This transaction valued the Chatham Rock Phosphate project at $34 million.
Managing director of both companies Chris Castle said the name change was a very significant milestone and he was pleased with the strong shareholder support.
“We’re achieving a lot of momentum with this project and this deal provides the right structure for the future."
“To develop the project’s true potential over the next 18 months or so, we need about $C25 million. Given there is little interest in the New Zealand market in resource stocks we think this is best achieved through an Initial Public Offering (IPO) and listing on the Toronto Stock Exchange, whose investors show more enthusiasm for projects such as ours."
Chatham Rock Phosphate shares and options will continue to be listed in New Zealand.
We need the funds to keep project development on track – specifically undertaking environmental baseline monitoring, mining design, bulk sampling for fertiliser company production testing and to complete final feasibility studies.
Mr Castle said shareholders were being encouraged to convert their options - which expire at the end of June and are in the money – early.
“This will enable us to continue our work programme in the interim period before we undertake the IPO.”
The NZX symbol will change from WEN to CRP and the options code will change from WENOA to CRPOA.
Chris Castle email@example.com 021 55 81 85 or 03 525 9170