NZX Announcement: Share Cancellation and New Issue

2 May 2016

NZX Market Announcement

Share Cancellation and New Issue

CRP entered a services agreement with Boskalis Subsea Contracting B.V. (Boskalis) in 2012 (as amended in 2014) (Agreement).  Boskalis is CRP’s technical partner for its Chatham Rise project, providing invaluable assistance to CRP on the design and engineering aspects of the proposed mining vessel and system.  CRP pre-paid for the services to be provided by Boskalis under this Agreement by issuing 25,355,266 shares to Boskalis at an issue price of $0.22 per share.  To the extent these shares were not paid by services by 31 March, they were to be transferred back for cancellation by CRP. 
Boskalis has fulfilled all of the service requirements under the Agreement but a number of the pre-paid shares remain unpaid.  Boskalis and CRP continue to work together on the Chatham Rise project.  Recent discussions have been held on how this can continue and how CRP can more appropriately compensate Boskalis as we work towards a new marine consent application.  It has been agreed that ongoing services will continue to be paid for in CRP shares but at prevailing (VWAP) market prices.  For services rendered by Boskalis to CRP in the year to 31 March 2016, 2,577,949 CRP shares are being issued to Boskalis at an issue price of $0.0067 per share.  In addition, the existing shares on issue to Boskalis that are unpaid are being cancelled. 
Allotment of Shares for services
CRP further advises that it has issued 8,115,847 ordinary shares in aggregate to five contractors of CRP in accordance with their respective contracts for services at an issue price of $0.0067 per share (Payment Shares).  The Payment Shares are for services provided in the year ending 31 March 2016. 
Full particulars of the share issues and cancellations are set out below. 
Capital Raising Update
CRP is also pleased to advise that it now has cash commitments of approximately $375,000 in aggregate to subscribe for new shares at $0.006 per share.  These commitments are conditional on completion of the pre break announcement procedure this Thursday and released to the market on 19 April 2016.  An allotment is, subject to the pre break announcement, expected to occur this Friday. 
Chris Castle
Chief Executive