30 October 2014
The Board of Chatham Rock Phosphate Limited (NZX: CRP) has resolved to extend the exercise period of its listed $0.688 CRPOB options (Options) in accordance with their terms of issue.
The exercise period for the Options commences 15 business days after CRP has been issued a marine consent from the Environmental Protection Authority over its Chatham rise project (Marine Consent). Prior to the Board resolving to extend the exercise period, the exercise period ended on the date that is 3 months after the Marine Consent has been granted.
The extension is for an additional nine month period meaning that the exercise period will now end on the date that is 12 months following the date the Marine Consent is granted.
The Marine Consent is the critical regulatory hurdle that CRP needs to able to commence its proposed mining operations on the Chatham Rise. The Marine Consent hearing process is ongoing and a decision is expected at the end of this year. CRP believes the hearing has been proceeding well and remains optimistic as to its outcome.
CRP’s share price significantly depreciated over recent weeks principally due to a market misconception created by the EPA staff report. More recent volatility is due to a combination of positive announcements and ongoing capital raising initiatives.
The Board is of the view that the extension of the Exercise Period is in the best interests of CRP in order to give a longer period for the share price to recover and stabilise if the Marine Consent is granted. This will give option holders a greater opportunity to see the share price exceed the exercise price of the options with a view to promoting the exercise of the Options and providing the Company additional working capital.
For these reasons the Board has exercised its discretion under the terms of issue of the options to extend the exercise period by nine months.
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