Chatham to Undertake Public Capital Raising

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The Board of Chatham Rock Phosphate has decided to proceed with a capital raising offer to the public in New Zealand under a simplified disclosure prospectus.

The offer will seek to raise $4 million with the ability to accept oversubscriptions of a further $6 million. The offer will consist of new ordinary shares at an issue price of $0.35 per share with one option attached to every three shares issued. The options will have an exercise price of $0.70 to receive one share and will be exercisable over a three month period following the grant of a marine consent for Chatham Rock Phosphate’s Chatham Rise phosphorites project.

A draft application for the marine consent has already been filed with a final application intended to be filed in approximately a month’s time. The marine consent, together with the mining licence (which is expected to be granted shortly) represent the key regulatory approvals needed for the project to proceed. Accordingly obtaining the marine consent is seen as a considerable de-risking step for Chatham Rock Phosphate and appropriate for triggering the option exercise period. Chatham Rock Phosphate will seek quotation of the options on the NZAX market.

The purpose of the offer is to substantially fund Chatham Rock Phosphate through to mining commencement, presently scheduled for 2015. To date Chatham Rock Phosphate has principally been funded through a combination of private placements with qualified investors and annual share purchase plan offers to shareholders. This offer will be available to any member of the public in New Zealand and its success would allow the management team to focus on achieving operating milestones for the project rather than needing to focus on seeking additional funding.

As recently announced, Edison Investment Research has assessed an un-risked value per share for Chatham Rock Phosphate of $2.00. While risks remain in the project, Chatham Rock Phosphate considers that the pricing of the offer represents attractive potential upside for investors against this valuation. The key will be Chatham Rock Phosphate maintaining project momentum over the next 12 months which will de-risk the project further and keep it on target for mining commencement in 2015.

The simplified disclosure prospectus for the offer is expected to be registered shortly with the offer opening in the next fortnight and closing in mid-July.

On behalf of the Board,

Chris Castle

Chief Executive Officer

Email: chris@crpl.co.nz

 

Final announcement for year to 31 March 2013

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Chatham Rock Phosphate Ltd today announced a loss of $1.4 million, reflecting the heighted activity of the company as it works towards gaining a mining licence and marine consent. The result compares with a loss of $741,000 in the comparative period last year.

CRP is developing a seabed rock phosphate resource on the Chatham Rise, about 450 km off the coast of New Zealand.

The past 12 months have been immensely satisfying for the progress achieved towards the company’s goal of starting mining operations in 2015.

CRP’s ongoing work continues to demonstrate the economic, financial and environmental benefits of the project:

  • It is New Zealand’s only major rock phosphate deposit- providing at least 15 years supply
  • Based on present projections it is expected to generate annual earnings pre-tax of US92 million
  • It has significant environmental benefits – ultra low cadmium, low carbon footprint, low farm run-off characteristics

According to the NZ Institute of Economic Research it will benefit the NZ economy by $900 million through import substitution, exports and increased economic activity.

Operations highlights

Among the highlights achieved over the past year (including those that have occurred since balance date) were:

  • Submission of a draft marine consent application to the Environmental Protection Authority
  • Edison investment research increasing CRP’s valuation to $2 a share from $1.87
  • The Government bringing forward the start date of the EEZ legislation which will enable CRP to submit a final marine consent application at the end of June
  • The early enactment of the Crown Minerals Act on 24 May 2013 to enable CRP’s mining licence application to be considered under the new law
  • The appointment of three new directors to the board – Boskalis senior executive Ko de Blaeij, marine expert Robert Goodden and CRP principal scientist Robin Falconer
  • The appointment of senior GNS scientist Ray Wood to the role of Chief Operating Officer.
  • Capital raised totalling $15.8 million since April 2012, including continuing support by existing shareholders. A total of $21.9 million has now been raised for the project since the prospecting licence was granted in early 2010
  • Strong interest in the project at international conferences where team members are sought after speakers
  • Regular media coverage of announcements and project progress by industry, national and international media
  • Preparation of numerous scientific reports by NIWA on a range of topics related to the marine environment, for use in the environmental impact assessment supporting the marine consent application to the EPA
  • Preparation of highly sophisticated plume models by world expert Deltares to measure and in assist in minimizing the predicted influence of mining activities
  • Continued active progress with Boskalis in the design of a mining system
  • Filing of our mining licence application in September 2012
  • Boskalis investing in a 20% holding
  • Applying for five phosphate prospecting licences off the coast of Namibia
  • The appointment of Najib Moutia (a former senior executive of world leading phosphate producer OCP) as Vice President Strategy and Marketing.

The most significant achievement, from an investor perspective, was the rerating of the company’s share price following several key milestones.

At its 46c peak on 9 October 2012, the company’s market value reached nearly $59 million, compared with $8.5 million in January 2012 and $22 million before the issue of shares on 24 September to Boskalis and Subsea Investments. 

Driving the rise in the price was CRP submitting its application for a mining licence and the release of the first Edison Research report assessing the company’s value at that stage at $1.87.

The share price has since settled at around the 35c mark with a present total market capitalisation of $47.5 million

A key part of the company’s operations involves building strong relationships with all of our stakeholders – informing them about the project, seeking their input and keeping them advised of our progress; be they non-government organisations, politicians, officials and advisers, iwi and imi, the international scientific and mining and fertiliser industries, the media, and of course our shareholders. 

This consultation and communication works in tandem with ensuring we have scientific evidence to support any claims we make.

The primary focus in the 6-7 months ahead will be working through the consenting process needed for the marine consent. All going well, approval will be granted by early 2014, leading the way to completing engineering designs and modifying the ship Boskalis will use for mining and transporting the rock phosphate deposit.

Chris Castle

Chief Executive

30 May 2013

 

 

Edison ups Chatham Rock Phosphate valuation

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Dear Chatham Rock Phosphate shareholder,

This announcement and the complete Edison report have just been filed with NZX and will be released well before the market opens later this morning.. The Edison report is attached, a summary of the report follows below, and there is also a link to the full report.

Regards,

Chris Castle

CEO

Chatham Rock Phosphate Limited

P.O. Box 231, Takaka 7142
Mobile: +64 21 558 185
chris@crpl.co.nz
Skype: phosphateking
www.rockphosphate.co.nz

 

Allotment of Shares

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20 May 2013 

Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today undertaken placements at $0.33 per share.

166,666 ordinary shares were issued at an issue price of $0.33 per share to qualified investors. This has resulted in CRP raising approximately $55,000 in new capital that will be used to progress the Company’s phosphate project. 

Chris Castle

Managing Director

Email: chris@crpl.co.nz

Class of security:

Ordinary shares

ISIN:

NZWENE0003S0

Number issued:

166,666 ordinary shares

Issue price:

$0.33 per ordinary share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

0.123%

Purpose of the issue:

For working capital purposes

Authority for the issue:

Board resolutions

Date of issue:

20 May 2013

Total number of securities on issue following allotments:

135,432,106 ordinary shares

 

EEZ start date puts CRP first on the list

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19 April 2013

Undersea mining developer Chatham Rock Phosphate expects to be the first minerals company to have an environmental consent application considered under the Exclusive Economic Zone legislation.

Chief executive Chris Castle said today he is delighted the start date for the EEZ Act had been confirmed as June, several months earlier than expected.

“We’re in the process of finalising our environmental consent application and we’ve been asking the government who will be in a position to consider it.

“We congratulate the government, and in particular Environment Minister Amy Adams, for ensuring there is a clear, robust pathway in place so all interested parties can review the work we’ve done and satisfy themselves that our project will meet the environmental tests of the EEZ Act. CRP believes the new law provides the framework to allow responsible development of the ocean’s resources.”

Minister Adams confirmed mining activities such as those planned by CRP will be a discretionary activity, subject to suitable scrutiny by the Environmental Protection Authority.

“We are familiar with what is expected and are planning our application on that basis.  Our application is close to finalisation and as soon as we are ready we will be submitting it so anyone with an interest can see the work we’ve done.

“We expect to work through the submission and hearing process during the second half of 2013 with an aim to receiving approval by the end of this year.

“That will enable Boskalis, our mining contract partner, to be able to commit to the significant capital required to develop the necessary equipment and fit out the mining ship.”

Mr Castle said receiving timing confirmation around the introduction of the EEZ only a day after confirmation CRP’s mining licence application was under active consideration was the icing on the cake of a very good week.

Chris Castle – +64 21 55 81 85 or chris@widespread.co.nz

 

CRP Mining Licence application is a priority, according to NZP&M

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18 April 2013

Chatham Rock Phosphate’s mining licence application will be considered as a priority under the brand new Crown Minerals Act law, according to New Zealand Petroleum and Minerals.

A letter to the company from NZP&M says the information CRP has provided regarding the mineral resource and its financial and technical capability has not raised any concerns.

The new Act was passed by Parliament this week and will be enacted within a few weeks.  NZP&M confirmed CRP’s mining licence application, made under the Continental Shelf Act, will be considered as if it was made under the new law.

Chief Executive Chris Castle said the letter provided significant comfort.  

“The licence application has been stuck in limbo because we were caught between two regimes.  This means there is a lot more clarity for everyone.  We are grateful to the government for resolving what has been a no-man’s land.”

“Our mining licence will now be considered with no further delay on its merits under the new CMA.  We are confident we will meet the tests of the new law.”

“Our environmental application will be considered – hopefully fairly soon – under the new Exclusive Economic Zone legislation.  We’re still waiting on the regulations to be finalised, but we expect they won’t be too far away and we intend that our consent application will be the first one in.”

“On that basis we will go through a comprehensive process established under the new Act in the second half of 2013.  Again we believe we will pass scrutiny and welcome the opportunity to demonstrate the rigour we have applied to our project.”

NZP&M National Manager Minerals Sefton Darby said in the letter to CRP: “Given the unique situation of Chatham Rock Phosphate’s mining application, consideration of it is being treated as a matter of priority.

“We appreciate the company has open lines of communications with NZP&M and we hope to process it quickly.  We intend to make a final decision on your application after the amendment Bill becomes an Act and takes effect.  

“We will continue to assess the application in anticipation.  This means we are assessing the application against the criteria for permits under the amended CMA regime.”

Mr Castle said he was delighted the government recognised the importance for the company to continue to make progress with its project to develop an undersea rock phosphate project on the Chatham Rise.

“We have done the work and we know this project stacks up technically, environmentally and financially.  We want to be able to show this in a public process as soon as possible so everyone can see we’ve done our homework.”

Chris Castle – +64 21 55 81 85 or chris@widespread.co.nz

 

CRP submits draft Environmental Impact Assessment

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Chatham Rock Phosphate today submitted a draft Environmental Impact Assessment to the Environmental Protection Authority.

The EPA is a national-level independent environmental regulation, which has the ability to grant or decline marine consent applications.

“This is a major milestone and the culmination of three years’ work,” Chief Executive Chris Castle said. 

The draft is being submitted to the EPA in anticipation of presenting a complete marine consent application in the next month.  This will be in advance of when the new Exclusive Economic Zone environmental consenting regime comes into force. 

At this stage the EPA is working with CRP in pre-lodgement.  The official process doesn’t start until the Act comes into force in June, when the regulations are promulgated.

“We want to make sure we have prepared all of the information the EPA needs, under the terms of the EEZ Act, so we’re working with them to check we’ve thought of everything.  It is supported by a series of very comprehensive reports that we think has considered every conceivable aspect.”

CRP expects to be the first minerals company to have a marine consent application considered under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) legislation.

Mr Castle said a clear process is now in place so all interested parties can review the work CRP has done and satisfy themselves the project will meet the purposes of the Act.

He said the information in the EIA would be publicly available once the final report is submitted. 

“Our application is close to finalisation and as soon as we are ready we will be submitting it so anyone with an interest can see the work we’ve done.  We expect to work through the submission and hearing process during the second half of 2013 with an aim to receiving approval by the end of this year.”

Mr Castle said the certainty of the earlier approval process will enable mining contract partner Boskalis to be able to commit earlier to the significant capital investment required to develop the necessary equipment and fit out the mining ship.

“We have done the work and we know this project stacks up technically, environmentally and financially.  We want to be able to show this in a public process so everyone can see we’ve done our homework.”

CRP’s planned activities will be a discretionary activity, subject to scrutiny by the EPA and interested parties.

Chris Castle – +64 21 55 81 85 or chris@widespread.co.nz

 

CRP international directors meet New Zealand team and stakeholders

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 8 April 2013 

Chatham Rock Phosphate’s two new international directors are visiting Wellington this week to meet a range of people from organisations involved in the company’s subsea mining project.

Boskalis representative Ko de Blaeij and marine mining expert Robert Goodden will be meeting key members of and advisers to the Chatham management team, plus government officials and Ministers.

Chief Executive Chris Castle said the newly enlarged board has already met by phone but this was the first opportunity to get around the table together.  It is also a chance for the Board to familiarise themselves with progress on a number of fronts ranging from scientific and technical workstreams to permitting processes and financing.

“We’re delighted to have broadened the skills of the board with two highly experienced people with very broad international business and technical skills, in addition to our other recent board appointee Dr Robin Falconer, who has had a comprehensive understanding  of the resource going back to the 1980s.”

Mr de Blaeij said Boskalis regards this project as an exciting new challenge that applies a range of existing technologies in a new way.

“I am looking forward to meeting all of the people in New Zealand delivering the project milestones. The Chatham team is working very well with our engineers and technical people who are developing detailed designs for the mining system.”

Mr Goodden, who has a background in marine drilling and construction, has assisted Chatham with some of its international connections.

“This is a world-leading project in the marine mining industry and I am delighted to be associated with it.  I am impressed at the progress the company has made over the past couple of years and think the next two years will be very exciting as we work through the permitting and construction phases.”

Immediately following the New Zealand meetings, key Chatham representatives will be visiting Boskalis headquarters in Papendrecht, the Netherlands, for regular operational status meetings.

Chris Castle – +64 21 55 81 85 or chris@widespread.co.nz