10 February 2015
CRP Secures Additional Capital
As detailed in the recent notice of meeting for the special meeting to be held on 19 February 2015, Chatham Rock Phosphate (CRP) has a continued need to raise new capital. This is particularly given the unforeseen delays with receiving the decision on our marine consent application.
CRP has today entered convertible loan agreements with qualified investors to raise a total of $245,000 in convertible loans. The summary terms of these loans are:
Instrument: Interest Free Mandatory Convertible Loan
Conversion Condition: Approval of the resolution to ratify placements at the 19 February special meeting of CRP shareholders. If the resolution is not approved, the convertible loans will require repayment on 1 June 2015 and CRP will be required to pay interest on the loans at a rate of 15% per annum.
Conversion Price: The Loans will convert to ordinary shares of CRP in March 2015 at a 15% discount to the 20 day volume weighted average price of CRP’s shares on the NZAX market.
As previously announced to the market, the Environmental Protection Authority has advised that its decision on the outcome of CRP’s application for a marine consent over an area of the Chatham Rise in New Zealand territorial waters will be released tomorrow. The CRP Board has decided to hold off on any further capital raising pending the outcome of the decision.
On behalf of the Board,
Chief Executive Officer