NZX Announcement: CRP Marine Consent application accepted as complete

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Dear Chatham Rock Phosphate shareholder,

This announcement has been filed with NZX and will be released before the market opens tomorrow morning.

 

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

Media Release

28 May  2014

 

CRP Marine Consent application accepted as complete

The Environmental Protection Authority today accepted Chatham Rock Phosphate’s formal Marine Consent application as being complete.

CRP lodged its application for a marine consent to mine phosphate nodules from the Chatham Rise on 14 May. This acceptance step begins a six-month process, starting with the EPA publicly notifying the application and appointing a decision-making committee to consider the application.

The completeness process involved the EPA assessing the content of CRP’s application, which includes a 452-page narrative document plus 35 appendices covering all of the scientific research CRP has undertaken over the past four years.

The application, representing four years’ work and $25 million in investment, is the second seabed mining proposal to be considered under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act, and is the only major licence CRP now needs, having gained a mining permit for its phosphate extraction project in December. 

Managing Director Chris Castle said it was another significant milestone.  “The EPA has a time-bound process that enables anyone with an interest to have input.  Having certainty around the process and time frames is very important and we really value the transparency of the regime."

“Throughout the past few months we have continued to work with the groups that have shown an interest in our project.  They are familiar with the content of the application and have had time to think about what we are proposing and to test our approach and raise issues as they have been identified.”

CRP’s phosphate resource, located on the seabed of the Chatham Rise, offers fertiliser security for New Zealand’s primary industry, has big export and import substitution potential, as well as environmental benefits, making it a project of national significance.

It is anticipated that the full application content will be publicly available from 12 June on the EPA website, and also via a link on rockphosphate.co.nz.  People can make submissions during June and July (the dates will be confirmed by the EPA shortly) and a public hearing will be held in September and October.

Chris Castle   +6421 558 185 or chris@crpl.co.nz

NZX Announcement: Final Announcement for the year to 31 March 2014

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To read the full announcement including financial statements - click here

 

Dear Chatham Rock Phosphate shareholder,

This announcement was released to NZX earlier this afternoon.

Regards

 

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

 

Final announcement for the year to 31 March 2014

Financial result

The results for the year to 31 March 2014 show an audited loss from operations of $1.42 million.  The company has experienced another year of significant progress, with 2014 shaping up to be transformational for the company.

Operating Highlights

Over the past 12 months CRP has achieved several significant milestones, and we are confident that these successes will continue.  As this annual report was being prepared we submitted our marine environmental consent application to the Environmental Protection Authority. This is the culmination of four years’ work and it’s where the bulk of the $NZ27 million we have raised has been spent.

At this stage in our development it’s worth revisiting the fundamentals of this ambitious plan to dig up phosphate from the seabed more than 250 km from the nearest point of land. We’ve always believed the critical factors for this project are:

1.      Can the resource be defined?

2.      Can it be mined?

3.      Can the product be sold?

4.      Can the project be permitted?

 

Can the resource be defined? – Since its discovery, scientists have tried to quantify the distribution and concentration of the phosphorite deposit.  A key achievement this past year was an independent estimate of the rock phosphate resource using modern techniques developed to evaluate onshore mineral deposits.  Completed by RSC Consulting, the study concluded:

·         Inferred resources of 80 million m3 of phosphorite at an average grade of 290 kg/m3, an estimated 23.4 Mt of phosphorite

·         Average thickness of the mineral resource is 20 cm at the surface of the sea floor

·         Additional exploration potential is in the order of 40 million m3, with an estimate of 8 to 12 Mt of contained phosphorite at grades between 200 and 300 kg/m3

·         The inferred resources are similar to earlier historical estimates undertaken on the Chatham Rise.

The exploration target of 8–12 million tonnes, currently excluded from the 23.4 million tonnes but within the mining permit area, will be tested by further sampling and, if confirmed, may add to the total inferred resource. This means that the existing data indicate sufficient resources are likely to be present to support at least 15 years mining at the proposed extraction rate of 1.5 Mt per year, and there may be another 5-8 years of resources in the less well-sampled areas within our mining permit.

There is additional exploration potential in the areas under application to the east (PPA 55967) and to the west (PPA 55971) of the existing permit areas.  CRP applied for prospecting rights over these areas late last year when they were relinquished by Kiwi Phosphate.  We believe parts of those areas have good potential and we plan to undertake additional exploration and build them into our longer term development aspirations.

Should we identify further commercial-level quantities of resource in the other areas (marked in yellow in the map below) then, providing the required licences and permits were granted, mining operations would continue at the annual rate of 1.5 million tonnes for a longer period of time.

 

Can it be mined? - Royal Boskalis Westminster of the Netherlands, our dredging technology partner, continues to progress development of the mining system and plan. Early in our discussions the company developed a mining system concept, based on well-proven technologies and adapted for the deeper waters in which our resource lies. Boskalis continues to refine that system as vessel options change and our knowledge of the project matures, but little has changed in general terms. A core team, including key Boskalis personnel, meets fortnightly by telephone and Boskalis is actively supporting the environmental consent application.

Can the product be sold? - We continually receive enquiries from international phosphate companies, and Najib Moutia, our head of sales and strategy, represents us in a range of forums – both in direct contact with customers and at conferences.  Given the particular attractions of our product, our regional location and the medium term political uncertainties regarding international supply, we are in no doubt Chatham rock phosphate will be in high demand.

Can it be permitted? – Gaining a mining permit and an environmental consent has been our primary focus for the past 18 months and we are confident we will be successful.  We have undertaken the scientific rigour and listened carefully to stakeholders and believe we have sufficient knowledge of the likely environmental impacts of our project to address concerns and answer questions raised during the consent process.

 

The Consenting Process

We submitted a draft environmental marine consent application in mid-2013 but decided to withdraw it because of lengthy delays in the consideration of our mining permit.  We did not have the resources to undertake both mining and environmental consenting processes simultaneously.

Granting of the mining permit took 14 months because we chose to wait for the new minerals permitting law to come into force, and then it took some time for the team at New Zealand Petroleum and Minerals to adjust to the new consenting regime.

We received the mining permit in December 2013.  Since then it has been full speed ahead to complete the environmental application, and a new draft of the Environmental Impact Assessment (EIA) was submitted to the Environmental Protections Agency (EPA) on 31 March 2014 for pre-submission consideration of our marine consent application. The delay in the process added to costs and time frames, but it allowed us to act on feedback from the previous version and the revised application addresses all of the concerns raised by stakeholders. 

During the second half of 2013 we undertook considerable additional scientific research and stakeholder consultation.  Consultation often led to additional scientific research. For example, when the fishing industry switched from being quiet supporters to vocal opponents of the project, the research deepened our understanding of potential impacts on commercially important fish species. That work identified no significant impacts, and we believe there is a very low risk of impacts on commercial fisheries.

One of the most exciting developments arising from the additional effort is our work with NIWA to develop a spatial planning process that identifies areas of the ocean with high biodiversity or resource potential, and supports development decisions to balance conservation and economic values.  This is a new way of looking at how the oceans can be managed, with the best available data used to identify areas to set aside for environmental protection and others that could be made available to harvest their resources.  It’s an extension of the work the fishing industry did to establish the more narrowly focused benthic protection areas.

Our delay in submitting our environmental marine consent application meant we became second in line, following Trans Tasman Resources’ bid to extract iron sands from waters off the Taranaki Bight. We’ve been able to closely watch the progress of that application and ensure any issues raised are adequately addressed in our own documentation. 

Financing

Our project is novel, even by international assessments.  There are a number of subsea mining projects but they are not common. Investors generally regard permitting rather than the technology challenges as the biggest obstacle to success.

Despite this challenge, we have raised $NZ27 million over four of the most difficult years ever for capital accumulation for mining projects.  Our success is due to the quality of the resource, the quality of the team doing the work and the loyal support of our shareholders. 

Over the past year shareholders continued to invest in the company’s future.  In June 2013 we undertook a small Initial Public Offering to New Zealand investors.  Unfortunately, uncertainty regarding our permitting and poor support from sharebrokers meant we raised $NZ1.6 million, less than the $4 million target.   However, strong contributions from qualifying investors and a $NZ2.1 million shareholder rights issue subsequent to balance date resulted in healthy capital raising.

In December we appointed Wimmer and Co. as our corporate advisers for capital raising in the London market.  Although we had long preferred the Toronto market for its breadth of mining and fertiliser stocks, its depressed state convinced us to consider alternatives.  We selected London because of its depth of capital with an appetite for risk and comparative buoyancy, and although there are significant costs associated with the listing process we believe it can offer access to capital not available on other markets.  Progress with the listing on London’s alternative AIM market continues, with listing expected during July in conjunction with $NZ8 million of capital raising. 

The chart below demonstrates investors continue to believe in the prospects for the project and that shareholders have been rewarded for their faith so far

The coming year

As noted at the outset, we believe the biggest – and best – events in CRP’s history are to come during 2014. The key milestones expected over the rest of this year are the listing and capital-raising in the London market in July and the granting of our marine consent in November.  Assuming those two events occur we believe the prospects for your company are extremely bright. 

Again we thank you for your ongoing confidence and support.

 

Chris Castle                                                                                      Linda Sanders

Managing Director                                                                           Chair

 

aprojectofnationalsignificance
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NZX Announcement: CRP files Marine Consent application – starts six month decision process

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Dear Chatham Rock Phosphate shareholder,

The announcement below was filed with NZX earlier this morning and will be released to the market before it opens.

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

Media Release

15 May 2014

 CRP files Marine Consent application – starts six month decision process

Chatham Rock Phosphate yesterday submitted its formal marine consent application to the Environmental Protection Authority.  Should it be accepted as complete, the six-month formal process is expected to lead to a decision in November.

The application, representing four years’ work and $25 million in investment, is the second seabed mining proposal under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012, and will be considered through a full public process by an expert panel appointed by the Environmental Protection Authority (EPA).

The marine consent is the only major licence CRP now needs, having gained a mining permit for its phosphate extraction project in December 2013.  CRP submitted a draft application to the EPA on 31 March 2014 and since then has been working with the EPA to address the EPA's preliminary comments on its application.

Managing Director Chris Castle said he was confident the application would meet the tough standard demanded by the law. 

“Our focus has always been two-fold: base the analysis on science and consult with all interested parties to ensure their concerns are addressed through the process.  Input from both stakeholders and scientists is critical to make sure all the bases are covered. 

“The results of this analysis and consultation are that we understand what the environmental impacts are likely to be and we can clearly demonstrate how we can minimise and mitigate them. We know this project can deliver to its shareholders financially, and to other stakeholders in terms of environmental requirements.”

CRP’s phosphate resource, located on the seabed of the Chatham Rise, offers fertiliser security for New Zealand’s primary industry, has big export and import substitution potential, as well as environmental benefits as a direct application fertiliser, making it a project of national significance.

The main 400-plus page document comprising the Environmental Impact Assessment is supplemented by 35 appendices, mostly scientific reports.  The information will be publicly available on the EPA website and via a link on www.rockphosphate.co.nz should the EPA accept the application as complete.  All interested parties will then able to read the information, make submissions and attend public hearings during the next six months.

Please note Chris Castle is currently in the UK so for further information please contact Linda Sanders, Corporate Affairs Director, linda@crpl.co.nz or 027 471 5593

NZX Announcement: Completion of Rights Issue and AIM Listing Update

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Dear Chatham Rock Phosphate Shareholder,

This announcement was filed with NZX last night and has just been released this morning.

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

22 April 2014

Completion of Rights Issue and AIM Listing Update

Chatham Rock Phosphate Limited (NZX: CRP) is pleased to advise that it has today allotted new shares under its rights issue to existing shareholders.

The rights issue has been extremely well supported with $1,795,315.95 subscribed out of a maximum of approximately $2.1 million under the offer. Net of oversubscriptions of $182,500, a total of $1,612, 800 was subscribed.  

There was strong interest in the oversubscription facility where applicants could apply for additional shares in excess of the rights they held. A total of 4,016,934 shares were applied for in the oversubscription facility and with this facility limited to 2.8 million shares CRP has had to scale all oversubscription facility applications in accordance with the prospectus. Affected applicants will be refunded excess application monies shortly.

As previously advised the rights issue was fully underwritten and the shortfall of 3,670,690 shares will be placed with the underwriter in approximately one weeks’ time. Full details of today’s allotment to applicants are set out below.

The Board of CRP thanks shareholders for their outstanding support of this offer.

AIM Listing Update

As previously advised to the market CRP intends to undertake a capital raising and secondary listing on London’s AIM market. Considerable work has been progressing in this respect. CRP is pleased to advise that it has secured its advisory team in this respect and has engaged:

·         Nominated Advisor and Broker: Daniel Stewart & Company plc.

·         Lead Financial Advisor and Broker: Wimmer Financial LLP.

·         UK Legal Adviser: Fasken Martineau.

·         Investigating Accountant: BDO.

It is intended to raise approximately NZ$8 million through this capital raising. Pricing for the capital raising has not yet been determined. The proceeds will be applied principally to the costs associated with CRP’s marine consent application and meeting CRP’s overheads ideally until all approvals and contracts are in place for our rock phosphate project on the Chatham Rise.

At present CRP is working through due diligence requirements associated with the capital raising and AIM listing. It is intended that the offering will commence in June. 

Chris Castle

Chief Executive

Email: chris@crpl.co.nz

 

Class of security:  Ordinary shares

ISIN:  NZWENE0003S0

Number issued:  10,751,839 ordinary shares

Issue price:  $0.15 per ordinary share

Payment in cash:  Yes

Fully paid:  Yes

Percentage of class:  6.93%

Purpose of the issue:  As set out in rights issue prospectus

Authority for the issue:  Board resolutions and NZAX Listing Rule 7.3.4

Date of issue:  22 April 2014

Total number of securities on issue following allotments:  155,157,137  ordinary shares

Media Release: Chatham Rock Phosphate files draft Marine Consent application

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Media Release

31 March  2014

Chatham Rock Phosphate today submitted a draft Marine Consent application to the Environmental Protection Authority - the culmination of four years’ work and more than $25 million in investment.

The Marine Consent is the only major licence CRP now needs, having gained a mining permit for its phosphate extraction project in December. The EPA, New Zealand’s environmental regulator, is expected to decide on CRP’s application in November after a full public process.

Including the proceeds of the rights issue presently underway, Chatham has raised over $27 million from its existing shareholders and through placements to qualified investors to finance extensive spending on science-based research.

Managing Director Chris Castle said the CRP team was very proud of the work contained in the application.

“Rigorous research by scientists has considered the relevant facets of what we propose and demonstrates how we can minimise and mitigate environmental impacts.

“We sincerely appreciate the input from all of our stakeholders that has contributed to our thinking. We believe our work will satisfy any issues raised.

“Having done our homework, we know this project stacks up technically, environmentally and financially.”

Mr. Castle said the CRP’s phosphate resource, located on the seabed of the Chatham Rise, offers fertiliser security for New Zealand’s primary industry, has big export and import substitution potential, as well as environmental benefits, making it a project of national significance.

The Environmental Impact Assessment forming the centrepiece of the Marine Consent application will be considered under the Exclusive Economic Zone environmental consenting regime that came into force in June last year as part of the EEZ and Continental Shelf (Environmental Effects) legislation.

The main 300-plus page document is supplemented by more than 30 appendices, mostly scientific reports and models. The information in the EIA will be publicly available on the EPA website, and via a link on rockphosphate.co.nz, once the EPA has accepted the application as complete.  People are then able to read the information, make submissions and attend public hearings during the next six months.

Contact Chris Castle on +64 21 55 81 85 or chris@crpl.co.nz

NZX Announcement: Update to Rights Issue Timetable

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Dear Chatham Rock Phosphate shareholder,

This announcement was released to NZX this morning.

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

24 March 2014

Update to Rights Issue Timetable

Further to the announcements last week, CRP advises that there has been an adjustment to the timetable for its rights issue.

The key change to the timetable is that the rights trading period will now commence this Thursday, 27 March, the same date as the Record Date. The offer period remains the same as previously advised.

An updated timetable for the offer is set out below.

Chris Castle

Chief Executive

Chatham Rock Phosphate Limited

 

Wednesday, 18 March 2014

Prospectus Registration Date

Wednesday, 19 March 2014 until Wednesday, 26 March 2014

FMA consideration period

Thursday, 27 March 2014

Rights trading commences on NZX Alternative Market

Thursday, 27 March 2014 (5pm)

Record Date for determining entitlements

 Friday, 28 March 2014

Prospectus and Entitlement and Acceptance Form mailed to Eligible Shareholders

Friday, 11 April 2014

Rights trading ceases (5.00pm)

Thursday, 17 April 2014

Offer closes (last day for receipt of Entitlement and Acceptance Forms by the Share Registrar) (5.00pm)

Tuesday, 22 April 2014

Allotment date and expected commencement of trading of New Shares applied for by Existing Shareholders.

 Tuesday, 29 April 2014

Allotment date for Shortfall subscribed for by Underwriter.

 

About CRP

CRP holds a strategic, multi-million tonne organic rock phosphate deposit uniquely positioned to access Asian and Australasian fertiliser markets. It was granted a 20-year mining licence in 2013 and has recently applied for new prospecting licences both east and west of its existing licence areas that could significantly increase the scope of resources. CRP is currently finalising its Environmental Impact Assessment for its Marine Consent application.

CRP has appointed Wimmer Financial to manage international capital raising for the company with a view to seeking an AIM Listing in the near future. Wimmer Financial is an international corporate advisory firm, specialising in natural resources, with a global reach through a network of close partners and clients all over the world.