NZX Market Announcement – Share Purchase Plan Allotment

Dear Chatham Rock Phosphate shareholder,

 This announcement was released to NZX earlier today.

Regards,
Chris Castle
CEO
Chatham Rock Phosphate Limited
P.O. Box 231, Takaka 7142
chris@crpl.co.nz
www.rockphosphate.co.nz
+64 (21) 558 185

 
20 February 2013

NZX Market Announcement – Share Purchase Plan Allotment

Chatham Rock Phosphate has today allotted shares under its recent share purchase plan and top up offer. A total of 3,896,793 shares were subscribed for resulting in approximately $1.285 million in new capital for the company.
 
The Chatham Rock Phosphate board is pleased with this great result and thanks shareholders for their support. 
 
Class of security: Ordinary Shares
ISIN: NZWENE0003S0
Number issued: 3,896,793
Issue price: $0.33 per share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 2.98%
Purpose of the issue: Funds raised will be applied as announced to the market on 14 December 2012.
Authority for the issue: Board resolutions
Date of issue: 20/02/13
Total number of securities on issue following allotments: 134,521,888 ordinary shares
 
For and on behalf of the Board
Chatham Rock Phosphate
 
 
Chris Castle
Managing Director
chris@widespread.co.nz

CRP $1 million share purchase plan support reflects three years of strong progress

    13 February 2013

The $1 million support for Chatham Rock Phosphate’s share purchase plan reflects three years of strong progress, Chief Executive Chris Castle said.

The company announced today it is on track to raise $1 million in new capital from its shareholder share purchase plan. The plan closes today at 5pm and allotment of shares is intended to take place early next week.

Mr Castle said the board of CRP is thrilled by progress with the latest capital raising and the enthusiastic response from shareholders. He noted it has been assisted by growth in the share register with the total number of shareholders rising from 300 in September to 430.

The latest milestones have been achieved on the third anniversary of the company being granted its prospecting licence, in February 2010.

In the ensuing period the company has:

·         increased its market value from $2.5 million to $48 million
·         raised $21 million from investors
·         applied for a mining licence in September 2012
·         established a core management team of nine people plus numerous experts
·         built a strong working relationship with a 50-strong team at Boskalis
·         attracted three cornerstone investors (Boskalis, Subsea Investments and Odyssey Marine)
·         strengthened its board with three new directors.

CRP is planning to file its marine consent application in the second quarter of this year.  Planning also continues to list on an overseas exchange and extend contract arrangements with Boskalis in the next few months.
 

Chris Castle

Managing Director
cdc@widespread.co.nz or 021 55 81 85

Allotment of Shares

Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 250,000 ordinary shares at an issue price $0.33 per share to qualified investors. This has resulted in CRP raising approximately $82,500 in new capital.

Chris Castle

Managing Director

Email: chris@crpl.co.nz

Class of security:

 Ordinary shares

ISIN:

NZWENE0003S0

Number issued:

250,000 ordinary shares

Issue price:

$0.33 per ordinary share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

0.192%

Purpose of the issue:

For working capital purposes

Authority for the issue:

Board resolutions

Date of issue:

7 February 2013

Total number of securities on issue following allotments:

130,625,095 ordinary shares

CRP expands board with three new directors

1 February 2013 

Chatham Rock Phosphate is appointing three new directors who will contribute valuable expertise and experience to the company in the run up to applying for a marine consent later this year and on-going financing of operations.

They are senior Boskalis executive Ko de Blaeij, marine mining entrepreneur Robert Goodden and eminent ocean scientist Dr Robin Falconer.

This is the first stage of enlarging the board to reflect the advancement of the project and will supplement the skills of existing directors Jill Hatchwell, Linda Sanders and Managing Director Chris Castle.

Mr. Castle said he was delighted with the strong technical and commercial knowledge the three new directors would contribute.

“All are already closely associated with the project.  Robin’s knowledge of Chatham Rise rock phosphate goes back to the 1970s and he has been central to the operational success and the milestones we have achieved. Robert has had a lifetime working in the marine mining industry and has introduced us to hugely valuable international contacts.  Ko has been a key sponsor within Boskalis and a staunch advocate since the start of the company’s involvement as our partner.”

Ko de Blaeij has worked for Boskalis since 1980 on a vast array of projects all over the world including France, Britain, Australia and Nigeria as well as within the Netherlands.

Until recently he has been Director of Boskalis Offshore guiding offshore pipeline and platform contracts in countries like Norway, Russia, Brazil, Saudi Arabia, India, Indonesia and Australia.  In 2012 he became Director of Boskalis International in the Middle East.  He has had a strong interest in the Chatham project over the past two years and is looking forward to the new role.

Robert Goodden is a member of the technical advisory team for CRP.  He chairs Subsea Minerals, developing business opportunities in marine mining (not associated with CRP cornerstone shareholder Subsea Investments) and before that as Chief Executive worked on a surf zone marine mining project off the coast of Namibia. He was previously on the advisory board for Nautilus Minerals advising on core drilling and sample recovery. 

He founded Seacore Limited, a world class marine drilling and marine construction specialist in 1976 and ran the company for 30 years. During the mid 1970s he developed a world-first underwater core drilling machine based on tension leg platform principles.  He holds a first class degree in mining engineering and was a commissioned officer in 39 Engineer Regiment.

Robin Falconer (PhD, BSc-Hons, BSc) has over 35 years experience in geosphere, atmosphere, and ocean science surveys and research as a university lecturer, government scientist, consultant, industry employee and research group manager; in New Zealand and internationally.    

The work has included marine mineral and oil exploration, seabed surveys, weather analyses, oceanography, environmental studies, Geographic Information Systems, and computer mapping. He has worked at sea off New Zealand, Australia, South Pacific, New Caledonia, China, Antarctica and the Arctic; for New Zealand, US, Canadian, Australian, SE Asian, German and UK companies and research institutes.

He has several years accumulated at sea experience on a wide range of industry and research institute vessels. He is Chair of GEBCO, the joint International Hydrographic Organization and UNESCO Intergovernmental Oceanographic Commission organisation that coordinates world ocean bathymetry mapping.

In marine minerals Robin has worked on offshore exploration projects for gold, chromite and phosphate. He has over 70 scientific/technical reports and 40 refereed publications, plus conference and seminar presentations.

Dr Falconer is consultant Chief Scientist for Chatham Rock Phosphate Ltd. He provides input on the practical and management aspects of marine operations including general seabed, oceanographic and environmental mapping; and technical input on all aspects of the project.

The appointments take immediate effect.

For more information contact Chris Castle on 021 55 82 85 or chris@widespread.co.nz or check out www.rockphosphate.co.nz

Allotment of Shares

22 January 2013

Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 150,000 ordinary shares at an issue price $0.33 per share to a qualified investor. This has resulted in CRP raising approximately $49,500 in new capital.

Chris Castle

Managing Director

Email: chris@crpl.co.nz

Class of security:

Ordinary shares

ISIN:

NZWENE0003S0

Number issued:

150,000 ordinary shares

Issue price:

$0.33 per ordinary share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

0.115%

Purpose of the issue:

For working capital purposes

Authority for the issue:

Board resolutions

Date of issue:

22 January 2013

Total number of securities on issue following allotments:

130,110,095 ordinary shares

Chatham Rock Phosphate – Share Purchase Plan

23 January 2013

Chatham Rock Phosphate Limited (NZX: CRP) reminds shareholders that the current share purchase plan offer closes on 13 February 2013. Completed application forms and payment needs to be received by our share registry, Link Market Services, by 5pm that day.

The Board of CRP does not intend to extend the closing date for the share purchase plan.

Under the plan shareholders have the opportunity to subscribe for up to $15,000 of shares at an issue price of $0.33 per share. 

Since the share purchase plan was announced in early December, CRP has already raised approximately $285,000 in new capital through placements to qualified investors at $0.33 per share.

If shareholders have mislaid their application forms, please email chris@crpl.co.nz for a new form. Thank you for your support of the company.

Chris Castle

Managing Director

Email:

chris@crpl.co.nz

Likely low cadmium rock phosphate source available in NZ

Cadmium levels in Chatham Rise rock phosphate are among the lowest in the world, according to Chatham Rock Phosphate Ltd managing director Chris Castle.

Mr Castle said the rock, located on the Chatham Rise seabed showed an average of 2.2 parts per million (expressed as mg/kg of P) from a range of samples gathered by CRP in 2012 from 11 separate locations. The lowest value was 1.3 parts per million with a high of 5.3 parts per million.

This compares with the voluntary limit of 280 parts per million that New Zealand fertiliser companies observe at present for manufactured superphosphate, a limit that is often approached by rock imported from overseas

“The tests we have conducted show our rock phosphate has among the lowest cadmium levels known.  This will be good news for farmers who choose to use our product (either as superphosphate or as direct application rock) when we start production in 2015 and ultimately it will be good for New Zealand food consumers.”

Cadmium is a naturally occurring heavy metal found in New Zealand soils. Excessive levels of cadmium in food can have implications for human health and excessive levels of cadmium in soils can restrict land-use.

The Ministry for Primary Industries is managing the gradual build up of cadmium in New Zealand soils through the cadmium contained in imported phosphate. The cadmium control programme follows research that shows cadmium levels have gradually increased over decades.

The programme recommends farmers and growers work closely with their advisers to determine the most cost effective, efficient and appropriate fertiliser application and land management options.  Since the mid-1990s New Zealand fertiliser manufacturers have blended their high-cadmium phosphate rock with sources lower in cadmium.

Mr Castle said low cadmium levels are one of the environmental benefits of developing a local phosphate resource.  Providing CRP rock phosphate for New Zealand would also reduce New Zealand’s carbon footprint through lower transport costs, and benefit the country’s balance of payments and foreign exchange exposure.  When used as a direct application source of fertiliser, rock phosphate also dramatically reduces soil leaching into waterways.

Cadmium can cause kidney failure and has been statistically associated with an increased risk of cancer and can also cause bone damage. Food is the dominant source of human exposure in the non-smoking population.

A Stuff website report says the build-up of cadmium levels in sheep made MPI ban the export of some offal from animals older than 2-1/2 years.  Testing showed up to 28 percent of sheep kidneys and 20 percent of cattle kidneys sampled between 1989 and 1991 exceeded the maximum residue levels allowed in New Zealand meat of 1 mg per kg.

Health guidelines for soil contamination at the time had a maximum level of 3mg/kg of soil. The natural average level of cadmium in NZ soils is 0.16mg/kg, but when farmland is taken into account, the average is more than double that, 0.35mg/kg, and soils on farms which have had a lot of super phosphate, such as dairy farms, can have as much as 2.52mg/kg.

Dairying areas with high fertiliser use tend to have the highest average contamination, including Taranaki (0.66mg/kg), Waikato (0.60mg/kg) and the Bay of Plenty (0.52mg/kg).

For more information contact Chris Castle on 021 55 82 85 or chris@widespread.co.nz or check out www.rockphosphate.co.nz

Allotment of Shares

7th January 2013

Allotment of Shares

Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 350,455 ordinary shares at an issue price $0.33 per share to qualified investors. This has resulted in CRP raising approximately $115,000 in new capital.

In addition two contractors of the Company (Widespread Portfolios Ltd and Robin Falconer Associates Ltd) have received 94,538 shares, in aggregate, under their respective Contracts for Service at NZD$0.357 per share. These shares represent partial payment for services during the October to December quarter. Pursuant to those contracts for service the issue price of NZ$0.357 per share reflects the 20 day volume weighted average price of a share on the NZAX market to 1 January 2013.

Chris Castle

Managing Director

Class of security:                      Ordinary shares

ISIN:                                         NZWENE0003S0

Number issued:                        444,993 ordinary shares

Issue price:                               $0.33 per ordinary share for 350,455 shares

             $0.357 per ordinary share for 94,538 shares

Payment in cash:                      Yes

Fully paid:                                 Yes

Percentage of class:                  0.344%

Purpose of the issue:                 For working capital purposes and for payment of fees

Authority for the issue:              Board resolutions

Date of issue:                             7 January 2013

Total number of securities        129,960,095 ordinary shares

on issue following allotments: 

Chatham Rock Phosphate acheives key milestone with Boskalis

19 December 2012

CRP is pleased to advise that it has agreed with Boskalis to proceed to phase two of its services contract. This phase involves the final detailed design of a system for extracting rock phosphate nodules. This phase is a commitment that is estimated to cost around €4 million and is scheduled to be completed by 30 June 2013.
 
Boskalis is CRP’s technical partner in its Chatham Rise rock phosphate project and is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. In July this year, CRP entered a contract for services with Boskalis Offshore B.V. and Boskalis took a 20% shareholding in CRP. This shareholding was, to a large extent, a prepayment for services that Boskalis was to provide, including for this new phase. It is anticipated that this new phase of the contract would involve only a modest future cash cost, if any, to CRP.
 
To date under the contract CRP and Boskalis have done extensive work refining the extraction system for recovering and separating phosphate nodules applying adapted and proven technologies. Key considerations have included capital and operating costs and minimising possible environmental effects.
 
The Chief Executive Officer of CRP, Chris Castle stated “We are very pleased with the results to date under our contract with Boskalis. The outcomes achieved so far all support the feasibility of taking our project through to production. We have enjoyed a very productive and positive working relationship with Boskalis and are thrilled at this further commitment to our project by Boskalis”. 
 
Chris Castle – Chief Executive Officer CRP - +64 21 55 81 85 or chris@widespread.co.nz

Chatham rock phosphate use would drastically reduce farm run-off, says CRP

18 December 2012  

The solution to run-off of phosphate into waterways lies in more use of direct application rock phosphate fertiliser, according to Chatham Rock Phosphate chief executive Chris Castle.
 
Mr Castle said a range of scientific studies over many years has shown direct application rock phosphate offers strong environmental benefits.
 
CRP has evaluated some of the studies undertaken which compare the use of rock phosphate and super phosphate on New Zealand and international farmland.
 
They show that when applied directly reactive rock phosphate (RPR) is both a very effective sustained release fertiliser and resistant to leaching.

The findings of the studies – some of which go back several years – are supported by Dr Bert Quin, probably New Zealand’s pre-eminent expert on the use of rock phosphate as a fertiliser, who first conducted extensive field trials while working as a scientist for government agencies during the 1980s.

Dr Quin believes nutrients continue to enter waterways from agricultural land, simply because of the type of fertilisers we use. He says the traditional fertilisers used in New Zealand have been single superphosphate (‘super’), which supplies phosphorus (P) and sulphur (S), and urea for nitrogen (N).He says their biggest problems are that they are ‘leaky’ fertilisers.

“Super is prone to run-off of applied phosphorus into waterways in the weeks after application, leaching into shallow sub-surface drains and water bodies on dairy farms, and being leached right through soils with low phosphorus retention such as those in Northland and the West Coast. Urea is prone to volatilisation (evaporation) losses as ammonia gas to the atmosphere, nitrate leaching and nitrous oxide GHG emission.

“By far the most cost-effective option for phosphorus is reactive phosphate rock or ‘RPR’. This is a natural mineral, formed on the sea floor originally, which is a very effective source of sustained-release phosphorus, ideal for maintaining high-producing pasture and extremely resistant to leaching.

Dr Quin estimates switching from super phosphate to RPR and RPR/DAP (diamonium phosphate) blends would reduce average run-off losses of P into waterways by 80-90%.

“This would take P losses below the trigger levels necessary to keep our lakes in a eutrophied state. In 5-10 years, water quality in the Rotorua lakes, for example, would be massively improved.

“Sulphur requirements are easily met by adding in elemental S. Like RPR, this is a sustained release fertiliser. The water-soluble sulphate form of S in super is very easily leached from many soils. As this happens, it takes valuable cations such as calcium and magnesium with it.”

Dr Quin says the time is right for people with the political will and determination to save New Zealand’s environment to stand up and be counted, and force change.

“If we do not, we will come to be viewed as the ‘gutless generation’ by our children and grandchildren.”

He also says anecdotal evidence over the 25 years-plus that some farmers have been using RPR shows eventually, maintenance requirements for phosphorus start to drop significantly because of reduced run-off and reduced fixation onto soil clay particles.
 
He believes there is a need for specific advice for farmers regarding managing or minimising any lag in production following a switch to RPR.
 
 
Other New Zealand and international research

The other research into waterway leaching by New Zealand and international scientists considered by CRP:
 
1. RPR revisited (1): Research, recommendations, promotion and use in New Zealand by BF Quin and M Zaman.
 
2. RPR revisited (2): Long-term farmer experience helps define the role of RPR in grazed pastures by M Zaman and BF Quin.
 
3. Phosphorus fertiliser form affects phosphorus loss to waterways: a paired catchment study by R. W. McDowell, R. P. Littlejohn and J. D.. Blennerhassett.
 
4. Evaluation of two management options to improve the water quality of Lake Brunner, New Zealand by RW McDowell.

5. Potential phosphorus losses in overland flow from pastoral soils receiving long-term applications of either superphosphate orreactive phosphate rock by RW McDowell, RM Monaghan and PL Carey.
 
6. Rainfall intensity and phosphorus source effects on phosphorus transport in surface runoff from soil trays by Francirose Shigaki, Andrew Sharpley and Luis Ignacio Prochnow.

7. Phosphorus Leaching in an Acid Tropical and Triple Superphosphate by E Gikonyo, AR Zaharah, MM Hanafi, and R Anuar.
 
8. Effectiveness of rock phosphate, coastal superphosphate and single superphosphate for pasture on deep sandy soils by MDA Bolland, MF Clarke, and JS Yeates.

Contact Chris Castle on 021 55 82 85 or chris@widespread.co.nz