Exercise of CRPOA Options and Allotment of Ordinary Shares

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3 May 2011

Chatham Rock Phosphate has approximately 14.75 million $0.10 options on issue which expire on 30 June 2011 and are quoted on the NZAX market under the code CRPOA.

As previously advised to the market, Chatham Rock Phosphate is encouraging the early exercise of these options to enable it to continue the work programme on Mineral Prospecting License 50270 prior to undertaking a proposed initial public offering in Canada.

Exercise forms have been received for a further 595,000 options for which ordinary shares have today been allotted. Full details are set out below.

This has taken the number of options exercised since 1 April to 1,929,000, raising $192,900 in aggregate.

On behalf of the Board,

Chris Castle
Managing Director

Email:  chris@widespread.co.nz
Phone: 021 55 81 85

Class of security: Ordinary Shares ISIN: NZWENE0003S0 Number issued: 595,000 Exercise price: $0.10 per share Payment in cash: Yes Fully paid: Yes Percentage of class: 1.66% Reason for the issue: Under the terms of issue of the options they may be exercised to receive ordinary shares on a 1:1 basis at any time prior to 30 June 2011 through the return of a completed exercise form and payment of the $0.10 exercise price. Authority for the issue: NZAX Listing Rule 7.3.11(b)(i) Date of issue: 3 May 2011 Total number of securities on issue following allotments: 35,455,660 ordinary shares
14,151,276 listed options

 

Widespread Energy Ltd is now Chatham Rock Phosphate Ltd

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14 April 2011

Widespread Energy Ltd has today changed its name and become Chatham Rock Phosphate Ltd.

The name change reflects shareholder approval to acquire 100 per cent of the Chatham Rock Phosphate project, through the exchange of the 10 percent of the project previously held by Widespread Portfolios for some energy assets and an increase in shareholding from 20 to 26 percent. This transaction valued the Chatham Rock Phosphate project at $34 million.

Managing director of both companies Chris Castle said the name change was a very significant milestone and he was pleased with the strong shareholder support.

“We’re achieving a lot of momentum with this project and this deal provides the right structure for the future."

“To develop the project’s true potential over the next 18 months or so, we need about $C25 million. Given there is little interest in the New Zealand market in resource stocks we think this is best achieved through an Initial Public Offering (IPO) and listing on the Toronto Stock Exchange, whose investors show more enthusiasm for projects such as ours."

Chatham Rock Phosphate shares and options will continue to be listed in New Zealand.

We need the funds to keep project development on track – specifically undertaking environmental baseline monitoring, mining design, bulk sampling for fertiliser company production testing and to complete final feasibility studies.

Mr Castle said shareholders were being encouraged to convert their options - which expire at the end of June and are in the money – early.

“This will enable us to continue our work programme in the interim period before we undertake the IPO.”

The NZX symbol will change from WEN to CRP and the options code will change from WENOA to CRPOA.

Chris Castle chris@widespread.co.nz 021 55 81 85 or 03 525 9170

 

Exercise of CRPOA Options and Allotment of Ordinary Shares

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15 April 2011

Chatham Rock Phosphate has approximately 16  million $0.10 options on issue which expire on 30 June 2011 and are  quoted on the NZAX market under the code CRPOA.

As previously  advised to the market, Chatham Rock Phosphate is encouraging the early  exercise of these options to enable it to continue the work programme on  Mineral Prospecting License 50270 prior to undertaking a proposed  initial public offering in Canada.

Exercise forms have been  received for 854,000 options for which ordinary shares have today been  allotted. This has raised $85,400 in total and full details are set out  below.

On behalf of the Board,

Chris Castle
Managing Director
Email: chris@widespread.co.nz
Phone: 021 55 81 85

Class of security: Ordinary Shares
ISIN: NZWENE0003S0
Number issued: 854,000
Exercise price: $0.10 per share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 2.47%
Reason for the issue: Under the terms of issue of the options they may  be exercised to receive ordinary shares on a 1:1 basis at any time prior  to 30 June 2011 through the return of a completed exercise form and  payment of the $0.10 exercise price.
Authority for the issue: NZAX Listing Rule 7.3.11(b)(i)
Date of issue: 15 April 2011
Total number of securities on issue following allotments: 35,380,660 ordinary shares, 15,226,276 listed options

Download CRPOA Options and Allotment of Ordinary Shares PDF

 

Asset Swap transaction with Widespread Portfolios completed

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A special meeting of Widespread Energy and Widespread Portfolios was held on 30 March to consider a resolution to approve an asset swap transaction between the companies. The resolution was passed by both companies. All other conditions to the asset swap transaction are also now satisfied and accordingly the transaction has now been completed.

Completion of this transaction has resulted in the following key outcomes:

  • Widespread Energy now owns as its sole investment 100% of Mineral Prospecting License 50270 over part of the central Chatham Rise to pursue the development of a rock phosphate resource. This project has been valued under the transaction at NZD$34 million.
  • Widespread Energy has divested to Widespread Portfolios all of its interest in Akura Limited, Green Gate Limited and Petroleum Exploration Permit 38526 over the Kotuku oil seeps on the West Coast.
  • Widespread Energy has allotted 4,099,627 ordinary shares for 70.587 cents per share to Widespread Portfolios thereby increasing its control percentage in Widespread Energy by 8.1% to 26.26%. Particulars of this allotment are set out below.

The Board of Widespread Energy thanks security holders for their support and now considers that the company’s operations are rationalised and in order to pursue a Canadian initial public offering and TSX listing this year.

 

Name Change for Widespread Energy

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With the new single investment focus for the Company the Board of Widespread Energy has determined that now is an appropriate time to re brand the company. It is intended to change the name of the company to CHATHAM ROCK PHOSPHATE LIMITED.

Upon this change occurring the company’s ticker codes with NZX will change from “WEN” (for ordinary shares) to “CRP” and from “WENOA” for listed options to “CRPOA”.

It is intended that this change will be implemented over the next few weeks and an announcement will be made to the market when the effective date for the change is determined.

 

NZX Announcement: Mining Concept Studies for Chatham Rise Project Now Completed

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30 March 2011

As announced to the market in early January, the Widespread Chatham Rise Joint Venture jointly funded three mining concept studies with four of the largest dredging companies in the world (with two jointly undertaking one study). The license area owned by the joint venture is located approximately 450km offshore and extensive historical research on the license area has indicated the potential for economic concentrations of rock phosphate, the primary constituent of fertiliser. The rock phosphate occurs in nodules of 2-150mm in size and rests in a 1 metre deep layer of sandy silt at the floor of the ocean in water depths of 375-425 metres.

The key purpose of the mining concept studies is to demonstrate for the joint venture that extracting rock phosphate from the license area is both technically and economically feasible. The studies propose extraction techniques for the rock phosphate with specific attention to minimising environmental impact. These studies are therefore a critical part of ensuring that proceeding with the project and ultimately seeking a mining license is viable.

The first concept study was received at the beginning of this month and as announced to the market at that time, it considered that extraction of rock phosphate from the license area is technically feasible and the estimated costs of extraction that were provided in the study are within the costs envisaged by the financial model for the project. Accordingly, this study is considered to be a strong endorsement that the project is economically feasible.

The remaining two concept studies have now been received. On the same basis as set out above, these studies both also endorse the project as being technically and economically feasible. Each of the three studies proposes a differing extraction technique and accordingly the joint venture has several options available to it to consider.

The three studies will now be considered by several experts that have been engaged by the joint venture to provide advice. It is anticipated that a preferred partner will be selected following the joint venture receiving this advice and following negotiations with the dredging companies concerned.

The joint venture is very pleased with the outcome of these studies and considers them a strong endorsement of the project.

For and on behalf of the Board
Widespread Energy Limited

Chris Castle
Managing Director
chris@widespread.co.nz

Download a pdf of this announcement

 

Chatham Rise Rock Phosphate Project valued at $34 million

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Two independent reports support a current value for the Chatham Rise rock phosphate project of $34 million.  Widespread Portfolios (WID) and Widespread Energy (WEN) today issued advice of shareholder meetings and associated documents relating to a proposed asset swap between the two companies which shareholders will vote on at the end of March. To view the full media release click here.

 

NZX Announcement: Update on Mining Concept Studies for Chatham Rise Project

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1 March 2011

As announced to the market in early January, the Widespread Chatham Rise Joint Venture has jointly funded three mining concept studies with four of the largest dredging companies in the world (with two jointly undertaking one study).

The license area owned by the joint venture is located approximately 450km offshore and extensive historical research on the license area has indicated the potential for economic concentrations of rock phosphate, the primary constituent of fertiliser. The rock phosphate occurs in nodules of 2-150mm in size and rests in a 1 metre deep layer of sandy silt at the floor of the ocean in water depths of 375-425 metres.

The key purpose of the mining concept studies is to demonstrate for the joint venture that extracting rock phosphate from the license area is both technically and economically feasible. The studies propose extraction techniques for the rock phosphate with specific attention to minimising environmental impact. These studies are therefore a critical part of ensuring that proceeding with the project and ultimately seeking a mining license is viable.

The first concept study has been received and considers that extraction of rock phosphate from the license area is technically feasible and proposes a dredging technique that could be employed for extraction. Actual particulars of the technique itself are confidential at this time. In any event, the technique ultimately employed will depend upon which dredging partner is eventually chosen by the joint venture and on further physical data being obtained from the license area that does not compromise the proposed technique.

Importantly this first study adopted conservative assumptions where there are physical data uncertainties and accordingly it is considered that the finding of technical feasibility is robust and a strong endorsement of the technical viability of the project.

This first study also opines on the economics of extracting the rock phosphate in terms of extraction volumes and costs. Very pleasingly for the joint venture, these economics are consistent with the joint venture’s own models and valuations. These models and valuations will be discussed in detail in the meeting documentation that will be circulated to securityholders shortly in connection with restructuring ownership of this project.

It is considered that this first study is a strong indication that the project is economically viable.

A draft second study has been received by the joint venture as well. It does not yet consider the economic viability of extraction however it proposes a differing extraction technology to the first study and also indicates that extraction is technically feasible. The second part of this study covering economics and the third study are expected later this month.

The joint venture is very pleased with the outcome of the studies received to date and consider them a strong endorsement of the project. The directors of each of Widespread Portfolios and Widespread Energy also consider that these results reinforce the need to restructure ownership of the project and undertake a significant offshore capital raising as detailed in market announcements yesterday so that the project can be aggressively pursued.

For and on behalf of the Board
Widespread Energy Limited

Chris Castle
Managing Director
chris@widespread.co.nz

Download a printable pdf of this announcement