Media Release: Chatham Rock Phosphate attends PDAC

/

Chatham Rock Phosphate is once again an exhibitor at the Prospectors and Developers Association of Canada convention, the world’s largest minerals investment and trade show being held in Toronto Canada next week. 

“It is THE place where the mining industry talks turkey and does business, this year we have secured a speaking slot and will be presenting the Chatham project to both Canadian and international investors“ CRP Managing Director Chris Castle said today.

 He has attended the mining show for more than twelve years and this year secured a prime booth position among the 1,000-plus in the investor exhibition area. 

Government agency New Zealand Petroleum and Minerals, together with GNS Science, are also operating a booth to promote New Zealand minerals projects and investment. 

Mr Castle is hosting the CRP booth with Cam McKenzie, of Kenex Information Systems, who provide a range of geological and database management services to Chatham.  The booth is providing a focus for people wanting to learn more about CRP’s innovative deep sea mining project.  The convention is mid-way through its four day programme and there has been a steady flow of visitors to the Chatham booth.

 “Investor interest here is certainly more focused now that potential international investors are aware that Chatham is listing on the Canadian market TSX.V by means of the announced merger with Antipodes Gold. This is gratifying because it is precisely why we are proceeding with the merger” 

CRP’s technical partner Royal Boskalis is also displaying information on its capability.

PDAC has been running since 1932 and the annual convention now has more than 1000 exhibitors and 500 speakers.  The 30,000 people who come from more than 120 different countries attend hundreds of presentations, courses, workshops and technical sessions during the four-day event.

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

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

To download this release in PDF format - Click Here

Chatham Rock Phosphate Limited signs Agreement for $600,000 equity injection

/

Chatham Rock Phosphate Limited (NZX: CRP) today confirms that it has entered into a conditional subscription agreement for $600,000 of new shares (New Capital) from a private investor (Investor) at $0.006 per share.

The New Capital will be paid to CRP in instalments over a 12 month period.  NZ$350,000 of the New Capital is unconditional and the corresponding ordinary shares in CRP will be issued to the Investor (on an unpaid basis) next week.  CRP shares in respect of the remaining NZ$250,000 of the New Capital are conditional on a pre break announcement process being completed. 

The subscription agreement also contains provision for the granting of options for one year at $0.006 (Options).  If the proposed takeover offer by Antipodes Gold Limited (AXG) of CRP (Takeover Offer) is completed before 30 September 2016, CRP will procure that AXG grant the Options to the Investor.  One (1) Option will be granted for every two (2) CRP shares subscribed for (up to 50 million in aggregate).  The granting of the Options reflects the significance of the New Capital and CRP’s need for working capital following the Takeover Offer (see further comment below). 

The Investor will be entitled to nominate one director to the Board of CRP. 

Takeover Offer

CRP continues to work with AXG towards completing the Takeover Offer.  Following discussions with the Toronto Stock Exchange (TSX), TSX has confirmed that in order for TSX to approve the issue of AXG shares (as consideration under the Takeover Offer) the merged entity (being AXG following the successful Takeover Offer) needs 12 months working capital as at the date on which the AXG shares are issued.  CRP has calculated that its working capital deficit is NZ$1.5 million leaving a working capital deficit of NZ$900,000

  CRP and AXG propose to make up the remaining working capital deficit by either:

1.     issuing further CRP shares to qualified investors; or

2.     AXG entering into convertible notes with investors which convert to AXG shares following successful completion of the Takeover Offer. 

Accordingly, in addition to authorising the issue of the remaining NZ$250,000 CRP shares to the Investor, CRP’s pre break announcement will seek to authorise further capital raising at $0.006 per share of up to NZ$900,000.

For and on behalf of the Board,

 

Chris Castle

Managing Director

 

Market Announcement:Ombudsman agrees to investigate EPA handling of Chatham’s application for a marine consent

/

Chatham Rock Phosphate Limited

Market announcement

16 February 2016 

Ombudsman agrees to investigate EPA handling of Chatham’s application for a marine consent

Chatham Rock Phosphate advised on 3 December 2015 that it intended to oppose an application for summary judgment for costs relating to the marine consent hearing process, made by the Environmental Protection Authority. The EPA is seeking payment of just under $800,000 of invoiced but unpaid costs. 

CRP subsequently made a request to the Office of the Ombudsman to conduct a formal investigation into the EPA's charges. 

The requested scope of the investigation was first to examine the EPA's costs recovery practices for its marine consent process - including the withholding of information from CRP which was relevant to whether some of the charges were authorised by law. 

In January we were asked by the Ombudsman to provide further information and to clarify certain matters. 

We are now able to report that we have been advised by the Office of the Ombudsman that they will be conducting an investigation into the matters we have raised. CRP welcomes this investigation. 

Chris Castle 

CEO – Chatham Rock Phosphate Ltd 

+64 (21) 558 185 

chris@crpl

Media Coverage: Govt watchdog to investigate EPA charges

/

The following article appeared in the news outlet insideresources.co.nz to read in it's original form click here.

Article text: 

The Environmental Protection Authority (EPA)’s cost recovery practices will be investigated by an independent government watchdog following complaints from a seabed mining company.

The Office of the Ombudsman will formally investigate Chatham Rock Phosphate’s complaint that it was unlawfully charged $800,000 by the EPA during hearings for its marine consent application.

Chatham Rock is refusing to pay the fees on the grounds they do not meet the 'reasonable' standard required under the Exclusive Economic Zone and Continental Shelf Act. It also believes it has grounds for a judicial review.

In early December the EPA launched legal action to recover the money in the form of a summary judgment of costs. At the time Chatham Rock advised it will challenge the action and subsequently requested the Ombudsman formally investigate the charges.

The requested scope of the Ombudsman’s investigation is to examine the EPA's cost recovery practices for its marine consent process. This includes the withholding of information from Chatham Rock which the company says was relevant to whether some of the charges were legal.

 

After providing further information and clarifying other matters the Ombudsman is satisfied there are grounds for an investigation. Chatham Rock has welcomed the decision.

Dispute

The announcement of an investigation comes as affidavits are being filed for the summary judgment, with the first hearing set to begin in the first week of March.

On 3 February EPA chief executive Allan Freeth told a Parliamentary select committee the authority is confident in the court action it is taking and the legitimacy of its costs regime.

Chatham Rock has already paid $1.86 million in costs invoiced to it by the EPA for processing its failed marine consent application.

However it says the remaining $800,000 includes things that should come from the EPA’s own overheads. This includes travel costs for EPA staff and decision making committee members to attend hearings. Hiring audio visual equipment, and paying for callout and repairs when it broke down, are also among the disputed charges. Chatham Rock says for others the EPA simply failed to provide justifying information, even when requested. These range from incorrect expense claims, hotel charges for contractors that included alcohol, and the EPA continuing to pass on costs to Chatham Rock after exceeding its own budget forecasts.

Similar frustrations have been expressed by Trans-Tasman Resources, which had its application to mine for ironsands in the South Taranaki Bight rejected, though the company declined to take legal action.

Media Coverage: Ombudsman to investigate EPA's charging in Chatham Rock application

/

Sharechat.co.nz released the following article. To read in it's original form click here

Article Text: 

Chatham Rock Phosphate has succeeded in persuading the Office of the Ombudsman to investigate the Environmental Protection Authority's charging regime for marine consent applications as it battles over its rejected plans to mine phosphate from the ocean floor.

The EPA is seeking summary judgment against CRP for payment of some $800,000 of invoiced costs that CRP is contesting, from total billings of about $2.7 million.

CRP's managing director, Chris Castle, said the Ombudsman had confirmed it "will be conducting an investigation into the matters we have raised."

"The requested scope of the investigation was first to examine the EPA's costs recovery practices for its marine consent process - including the withholding of information from CRP which was relevant to whether some of the charges were authorised by law," he said.  

CRP's was the second application for seabed mining to be rejected under the new regime regulating economic activity in New Zealand's vast offshore Exclusive Economic Zone. Its application was to take phosphate nodules from the Chatham Rise, some hundreds of kilometres to the east of Christchurch. A decision-making committee appointed by the EPA concluded there was too much uncertainty about the environmental impacts of the proposal.

CRP says it intends to reapply.

The EPA also turned down an application from Trans Tasman Resources to mine ironsands off the coast of Whanganui in 2014. TTR is also planning to reapply.

Minerals sector lobbying seeking significant changes to the EEZ regime after the rejections were largely unsuccessful, although legislation is before a select committee that would see ministers rather than the EPA appoint members of decision-making committees in future. Ministers already appoint commissioners for boards of inquiry convened under fast-track provisions of the Resource Management Act, which is used for resource consents for onshore and inshore coastal economic development.

CRP shares plunged from around 14 cents at the time of the EPA's rejection of the application a year ago, and most recently traded at 7 cents. CRP is merging with another Castle-related vehicle, Antipodes Gold, to gain dual-listing on the NZAX and Toronto Stock Exchange.

According to a January shareholder update, the company is also seeking a refund of fees it says it was overcharged by the mining licence permit issuer, New Zealand Petroleum & Minerals.

BusinessDesk.co.nz

Media Coverage: Chatham Rock determined to reapply for seabed mining licence as fee stoush looms

/

This article was published on various media outlets earlier this evening. As well as providing a helpful CRP progress report it corrects an erroneous report circulated in the media earlier today.

Regards,

Chris Castle

Chief Executive Officer
Chatham Rock Phosphate Limited

 

PATTRICK SMELLIE TUESDAY FEBRUARY 2, 2016

Chatham Rock Phosphate says it intends reapplying for a licence to mine the seabed off the Chatham Rise for phosphate nodules, even as it prepares for court action with the Environmental Protection Authority over disputed fees from its unsuccessful first application.

The EPA is within a fortnight of filing affidavits relating to $795,000 of marine resource consent application fees that it claims are owed after it turned down CRP's first application last year, with court hearings scheduled for the first week of March, the environmental regulator's chief executive, Allan Freeth, told Parliament's environment and local government select committee.

CRP managing director Chris Castle says the fees dispute hasn't quelled his enthusiasm for the venture. He told BusinessDesk the company is watching seabed mining applications in both New Zealand and Mexico and is determined to reapply for a seabed mining licence for a remote section of the Chatham Rise in New Zealand's Exclusive Economic Zone, the vast offshore area that has been subject to an environmental consenting regime only since 2012.

The authority has applied for summary judgement on the outstanding fees, which CRP has challenged as "unreasonable and unlawful, and for which it anticipates mounting judicial review proceedings. EPA invoices for the hearings totaled $2.66 million, of which $1.86 million has been paid.

The EPA also turned down an application from Trans Tasman Resources to mine ironsands off the coast of Whanganui in 2014. The two applications are the only ones to have sought permission to mine the seabed in the EEZ.

Mr Castle said that proposed changes to the EEZ legislation, under resource management law reforms currently before a select committee, held out the prospect of an improved process in the future, and the company was watching with interest as TTR readies a reapplication under the existing regime.

Mr Freeth told the select committee the authority was "very confident" that it would gain a favourable ruling against CRP, which is in the process of achieving a long-held desire to list on the Toronto Stock Exchange by merging with TSX-listed Antipodes Gold, which will change its name to Chatham Rock Phosphate.

CRP is also watching closely an application for seabed mining of phosphate off the coast of Mexico, which is close to a decision and is being pursued by investors who also hold interests in CRP. The New Zealand company continues to meet fortnightly with its technical partner and 6%  shareholder, Dutch undersea experts Boskalis, to refine plans for mining off the Chatham Rise, Mr Castle said.

"On another front, we are working in the phosphate market," said Mr Castle. "We are involved in two projects to buy and sell rock phosphate."

CRP argues phosphate from the Chatham Rise would remove the need to import phosphate from the disputed North African territory of Western Sahara and that the New Zealand-sourced product would be lower in cadmium than imported phosphate. The mineral is widely used in New Zealand as an agricultural fertiliser.

(BusinessDesk)

Chatham offers ready-made solution for soil and water quality

/

If you would like to download this announcement as a PDF - click here

The role of fertiliser should be included in the research initiatives announced by the government this week as part of Our Land and Water National Science Challenge.

It should identify what effect fertiliser use has on the quality of waterways. 

If it is significant, the research would underscore the importance of using Chatham Rise sourced rock phosphate as a local organic solution for New Zealand farms to help improve the quality of soil and water.

The product offers a low waterways run-off option, with several other environmental benefits.

Earlier this week the Government launched the latest challenge, which aims to enhance primary sector production and productivity while maintaining and improving land and water quality.  The challenges are dedicated to breaking new ground in areas of science crucial to New Zealand’s future.

Science and Innovation Minister Steven Joyce was quoted as saying when announcing the project: “From an economic standpoint they don’t come much more important than this.”

He went on to say there is increasing confidence new agricultural tools will be able achieve both these crucial objectives for New Zealand.

The Crown Research Institutes and Universities will be researching:

·       Identifying contaminant flow pathways and dilution processes in soil and water to help make better land management decisions and reduce environmental impact.

·       Exploration of new technologies such as such as drones, precision agriculture, and animal and plant genetics, information systems and diverse products to make the best possible use of NZ’s diverse land resources.

·       Designing effective collaborative processes and tools for achieving water quality limits.

So it would be logical for the scope of these research initiatives to also consider the important role fertiliser plays in affecting both soil and water quality. 

It’s already well established in field tests that reactive rock phosphate-based fertilisers result in equivalent crop outputs while maintaining a healthier soil profile and significantly less run off into waterways.

Our Chatham Rise sourced rock phosphate is a proven reactive rock phosphate which also includes significantly lower cadmium levels than imported rock phosphate.

Further environmental benefits arising from using Chatham rock phosphate include a much lower carbon footprint arising from both its adjacent location and reduced application frequency.

 

Regards,

Chris Castle

CEO - Chatham Rock Phosphate Limited

 

 

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

Update : 18 January 2016

/


Last chance to invest at the old price

As shareholders will be aware, Chatham has been steadily progressing its fundraising programme in recent months. However, as we are about to merge with cashed up Antipodes Gold by means of a reverse takeover we will need to cease this activity in the very near future.
 
After the merger shareholders will still be able to invest, but we will be a significantly different company.
 
We will still be called Chatham Rock Phosphate, but we expect then to be listed on the Canadian TSX.V exchange, we will have inherited the Antipodes cash balances, its 500 mostly Canadian shareholders, a new Toronto based director, and its Canadian organisational infrastructure.
 
We are doing this to broaden our appeal to USA, Canadian and other international investors. We expect that this will strengthen Chatham and facilitate further capital raising in international markets when it is needed.
 
As the merger is expected to commence in mid-February this is the last chance to invest in Chatham on the current offer terms of 0.6 cents a share. Application forms are available for eligible investors by emailing chris@crpl.co.nz. The offer will close on Friday 5 February. 
 
Proposed attendance at PDAC Convention
 
As part of Chatham’s repositioning in investor markets, we are attending, hosting a booth and presenting at the annual Prospectors & Developers convention to be held in Toronto in early March.  
 
PDAC International Convention, Trade Show & Investors Exchange is the world’s leading convention for people, companies and organisations in, or connected with, mineral exploration. This year more than 1,000 companies and countries (including NZ’s MBIE minerals arm) will be exhibiting and 23,500 attendees from over 100 countries will be present.

 
Progress Report


Current initiatives include:
 
·       Working through the steps required before we decide whether to resubmit our application for a Marine Consent. This includes reviewing the previous application to EPA – we have commissioned a 360 degree review from the key players involved in the last application.

·       Working with officials in various government ministries to seek efficiencies in the permitting process – the recently announced Resource Legislation Amendment Bill has the potential to achieve these.

·       Keeping a close watch on the actions of Trans Tasman Resources. Encouragingly TTR has already announced that it intends to reapply for a Marine Consent, and it appears likely that this application will proceed under existing legislation. 

·       Investigating and advancing trading relationships with other participants in the phosphate sector

·       Continuing to build our shareholder base – we now have more than 1,000 shareholders and will have 1,500 after the merger

·       Advancing towards sourcing reactive rock phosphate from several well located on-shore deposits

·       Continuing to build farming sector, academic, industry and central government support for the Chatham Rise project and for the use of Chatham rock phosphate as a sustainable, environmentally friendly phosphorous source. As part of this we’ve commissioned further pot tests to be followed by field trials

·       Attempting to resolve the fee dispute with EPA

·       Seeking a refund of overcharged mining permit fees

·       Being actively involved and frequently invited to present at fertiliser, resources sector and marine mining conferences, and undersea environmental protection forums.

  
Restated Goals and Objectives

As shareholders will be aware Chatham Rock Phosphate has redefined its goals and objectives and it’s timely to restate these.

Chatham Rock Phosphate (CRP) aims to be the premier supplier of direct application phosphate to the New Zealand and global agricultural sector.  We are passionate about the benefit of direct application fertiliser to sustainable farming and agricultural practices.

Our objectives are to:

·       Achieve consent of the Chatham Rise project and develop the asset

·       Diversify our product mix to include other onshore phosphate resources

·       Maintain our involvement at the forefront of the marine minerals sector to leverage our expertise as a project pioneer

·       Develop a pathway for CRP products for the agricultural and retail sectors.

 
Why do we prefer to focus on supplying direct application phosphate?

Three reasons:

1.     It’s the sort of special rock that is in the substantial Chatham Rise deposit

2.     Direct application rock phosphate is proven to be significantly more environmentally friendly toward both soils and waterways

3.     In some markets it sells at a significant premium despite the lower production costs

 

How well are we progressing with these aims?

 1.     After a global search of rock phosphate deposits we have identified a short list of small, well located, low capital cost “boutique” phosphate resources.

2.     We are now in contact with the permit holders and embarking on exploratory discussions concerning the sourcing of rock for sale. Our ace in the hole is the expertise and experience of Moroccan Najib Moutia, our vice president strategy and marketing.

3.     Target markets for these deposits are localised, making freight costs much less of an issue.

4.     We will target a range of buyers in these markets, including bulk supply, niche organic/sustainable users, and into the retail market. We are making good ground in all three arenas.

 
The Chatham Rise timetable from here

  • March 2016 - Chatham completes financing programme, Antipodes and Chatham merge with the combined entity listed on the TSX.V and NZAX
  • March/June 2016 – decision made to resubmit Marine Consent Application
  • September 2016 – Marine Consent Application lodged
  • March 2017– fast tracked decision released
  • June 2017 – Marine mining contract finalised and ship conversion commences
  • September 2019 – trial mining
  • January 2020 – commercial mining commences

 
In parallel with progressing the Chatham Rise project CRP will be steadily building a phosphate trading business in preparation for accepting and marketing the offtake from the Chatham Rise deposit.
 
Our confidence in achieving these parallel onshore and offshore objectives is based on both our in-house phosphate trading expertise and the progress we have made identifying suitable rock phosphate sources and suitable trading partners.
 
Any shareholder wishing to discuss any aspects of this announcement and Chatham’s business plan can call me on +64 21 558 185, email me at chris@crpl.co.nz, or Skype me at phosphateking.
 
Regards,
 
Chris Castle
 
CEO - Chatham Rock Phosphate Limited