Underwrite of CRPOA Options and Allotment of Ordinary Shares

/

15 July 2011

Further to the announcement of 8 July, Chatham Rock Phosphate has now completed its underwriting arrangements in respect of the shortfall of the shortfall of CRPOA $0.10 options.

This has resulted in an allotment today of 1,022,508 ordinary shares and results in the entire class of CRPOA options having been exercised, raising approximately $1.6 million in new capital for the Company.

The Company thanks all persons who exercised their options and the underwriters for their support.

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: 1,022,508 Exercise price: $0.10 per share Payment in cash: Yes Fully paid: Yes Percentage of class: 2.06% Reason for the issue: Through underwriting arrangements for shortfall in CRPOA options. 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. Underwriters committed to allocations of the shortfall and paid this exercise price to receive shares. Authority for the issue: NZAX Listing Rule 7.3.11(b)(i) Date of issue: 14 July 2011 Total number of securities on issue following allotments: 50,606,936 ordinary shares

View or download a .doc of Underwrite of CRPOA Options and Allotment of Ordinary Shares - 15 July 2011

 

Exercise of CRPOA Options and Allotment of Ordinary Shares

/

8 June 2011

Further to the announcement of 30 June, Chatham Rock Phosphate has now processed all final applications received from the holders of the CRPOA $0.10 options. This has resulted in an allotment today of 2,377,000 ordinary shares.

In total 15,057,768 options have been exercised raising approximately $1.5 million in new capital for the Company. Only 1,022,508 options have not been exercised, representing only 6.3% of the entire class. The Board is very pleased with this result and thanks option holders for their support of the Company.

As previously announced to the market, the Company has received underwriting commitments for the unexercised options and accordingly 1,022,508 shares are intended to be issued next Friday to cover the option shortfall. This will take total capital raised through the options to $1.6 million.

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: 2,377,000 Exercise price: $0.10 per share Payment in cash: Yes Fully paid: Yes Percentage of class: 5.04% 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: 8 June 2011 Total number of securities on issue following allotments: 49,584,428 ordinary shares

View or download a pdf of Exercise of CRPOA Options and Allotment of Ordinary Shares - 8 June 2011

 

June 2011 Update


/

In view of the significant level of ongoing activity it’s timely to provide a further project update.

Progress is being made at several levels including the financing of the project, optimising aspects of the resource recovery process, environmental aspects, market development and product enhancement.

Financing

As shareholders will be aware the immediate priority is to ensure that as many option holders as possible take advantage of their opportunity to acquire Chatham Rock Phosphate shares at 10 cents on or before 30 June 2011. At the time of writing it appears that the vast majority of options will be exercised and the funds raised will then ensure that the project retains its present momentum.

At the same time progress continues on the proposed overseas listing and associated initial public offering. The independent technical report required as a pre-requisite for the listing has been completed and drafting of the prospectus is under way. Discussions and the related due diligence process continue with several leading investment banks. We are now timetabling the IPO to take place in mid September after the northern hemisphere summer break.

Recovery Process

Following the selection of Boskalis as our preferred provider of a recovery and separation system for the rock phosphate deposit, we are now negotiating with Boskalis to undertake detailed design, production testing and associated environmental studies.

Environmental

During May 2011 we positioned oceanographic monitoring equipment within our licence area. The instruments are intended to collect information on currents, turbidity, temperature and salinity within the water column.

This data will supplement the significant body of knowledge we already hold concerning the marine environment on the Chatham Rise.  During the last year we have commissioned a number of reports (prepared by NIWA) concerning most aspects of the marine environment and these will be published in due course to facilitate informed discussion about any environmental impacts of the project.

The recent announcement of the outline of an Exclusive Economic Zone and extended Continental Shelf environmental effects bill removes a lot of uncertainty for our project as it means there would be a framework that would allow all of those with an interest to contribute to decisions about how the environmental effects of resources are administered.

Market Development

Discussions continue with a number of potential buyers, both in Australasia and further afield, for our product. We are encouraged by the progress now being made as the potential buyers recognise the merits of our initiative. As concerns grow over the certainty of supply of phosphate rock from the Middle East, its high cadmium levels, and the carbon emissions required to transport to this part of the world, the strategic value of the Chatham Rise rock phosphate resource asset can only continue to rise.

In a related initiative we are investigating the costs of beneficiating our product (a process that increases the level of phosphorous) to increase its marketability, both here and overseas. This initiative is being encouraged by a number of potential stakeholders in the project and may receive financial support from more than one quarter.

All in all, your directors are very pleased with progress.

Chris Castle
Wellington, 20 June 2011

Download this Rock Phosphate June 2011 update

 

Boskalis to undertake detailed design of offshore phosphate project in New Zealand

/

Papendrecht, 7 June 2011

Royal Boskalis Westminster N.V. has been exclusively selected by Chatham Rock Phosphate Limited (CRP) to undertake the detailed design of its offshore rock phosphate nodule project at Chatham Rise. Boskalis was selected following a full review of three scoping studies submitted by global dredging contractors.

Chatham Rise is located 450 km east of Christchurch and covers an area of 4,726 km2 of significant seabed deposits of rock phosphate at a depth of approximately 400 meters. The establishment of a rock phosphate industry has a significant number of economic, environmental and market benefits. The phosphate will be applied as an agriculture fertilizer, replacing current long distance imports.

The innovative project approach developed by Boskalis is based on a recovery and separation system for the phosphate nodules applying adapted and proven dredging technology. CRP will enter into discussions with Boskalis to undertake detailed design and production testing. Furthermore, Boskalis will be closely involved in associated environmental studies which are now commencing. Boskalis is looking forward to working with the CRP team over the next 12-18 months to develop a comprehensive technical, economic and environmentally extraction solution.

For additional information: http://rockphosphate.co.nz/news/archives/2011/06/02/chatham-rock- phosphate-successfully-completes-preliminary-engineering-phase-for-phosphate-project-in-new- zealand/

The Boskalis strategy is designed to benefit from the key macro-economic drivers that are fueling global demand in our selected markets: global trade, increasing energy consumption, expanding population pressures and the challenges of changing climate conditions.

This is an English translation of the Dutch press release. In the event of any disparity between the Dutch original and this translation, the Dutch text will prevail.

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. We provide creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. We offer a wide variety of marine services through SMIT and we have positions in strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). The company holds important home market positions in and outside of Europe. Boskalis has a versatile fleet of over 1,000 units and operates in over 65 countries across six continents. Including its share in partnerships, Boskalis has approximately 14,000 employees. Boskalis celebrated its 100th anniversary in 2010.

For further information please contact:

Martijn L.D. Schuttevâer Director of Investor Relations & Corporate Communications
Telephone: +31 78 69 69 822 / +31 6 200 10 232
Telefax: +31 78 69 69 020
E-mail: m.l.schuttevaer@boskalis.nl

This press release can also be found on our website www.boskalis.com

View or download the Boskalis Press Release PDF

 

New environmental regulations provide welcome framework

/

Today’s announcement of the outline of an Exclusive Economic Zone and extended Continental Shelf environmental effects bill removes a lot of uncertainty, according to Chatham Rock Phosphate managing director Chris Castle.

Mr Castle said the proposal, outlined by Minister for the Environment Nick Smith today, meant there would be a framework that would allow all of those with an interest to contribute to decisions about how the environmental effects of resources are administered.

Chatham Rock Phosphate has an exploration licence to develop a rock phosphate resource on the seabed of the Chatham Rise, offshore New Zealand

“Our exploration licence process took much longer than it should have because the government officials were unsure of which rules to apply.  We expect that a clearer framework will be better for everybody.

“If the Minister’s timeframe is achieved, of having the law operating by this time next year, then we expect to be among the first companies to use the new law.

On behalf of the Board
Chris Castle

Onekaka, 2 June 2011

Download this 'New environmental regulations provide welcome framework' article

 

Chatham Rock Phosphate successfully completes preliminary engineering phase for phosphate project in New Zealand

/

Chatham Rock Phosphate Limited (CRP) has selected one of the worlds largest integrated dredging companies, Royal Boskalis Westminster (Boskalis) to undertake the detailed design of their rock phosphate nodule project at the Chatham Rise, subsequent to a complete review of scoping studies delivered by four of the world’s largest dredging companies ( Boskalis, IHC Merwede/D.E.M.E. and Jan de Nul), who carried out three independent extraction, upgrading and commercial delivery studies.

After CRP received these studies several months ago, they were reviewed by a panel of four independent marine dredging experts, who interacted with each study group to select the superior proposal. There was broad diversity of design and all propositions are considered technically feasible.

The Boskalis system was selected; their proposal is based on a recovery and separation system for the phosphate nodules designed around proven commercial technology. CRP is now in negotiation with Boskalis to undertake detailed design, production testing and be closely involved in associated environmental studies which CRP are now commencing. This overall phase is expected to take some 12-18 months.

The directors and management of CRP are gratified that this phase of the project attracted so much interest from the leading dredging industry companies and look forward to working with Boskalis to now complete the detailed design phase of the Project.

In selecting Boskalis, Dredging Development manager Sander Steenbrink responded that his company was delighted to be selected to work on the project. “This project is extremely interesting as it allows us to combine our engineering and R&D capabilities with our successful contracting track record in a challenging environment. We believe that this combination has resulted in a project approach which is technically viable. We are looking forward to working with the CRP team to develop a total extraction solution that is both cost effective and manages the environment, in accordance with our strict operating codes through-out the world.”

Royal Boskalis Westminster N.V.

Royal Boskalis Westminster N.V. (Boskalis) is a leading global services provider operating in the dredging, maritime infrastructure and maritime and terminal services sectors. The activities of Boskalis comprise Dredging & Earthmoving, Harbour Towage, Salvage, Transport & Heavy Lift, Terminal Services and Martime Civil Infrastructure.

Boskalis concentrates on the commodities such as oil and gas, ports, and land reclamation / coastal protection market segments. This spread gives the group a solid foundation and the flexibility to be able to take on a wide range of projects with excellent prospects for balanced growth. Demand for its services are driven by growing energy consumption, growth in global trade, growth in world population, and climate change.

The company’s main clients include oil companies, mining firms, port operators, governments, shipping companies and international project developers. Boskalis provides its clients with a broad range of services within the chain comprising design, project management, execution and continuous services.

Boskalis has around 14,000 employees and is active in over 65 countries across six continents. Its versatile fleet consists of over 1,100 vessels. Royal Boskalis Westminster N.V. is based in the Netherlands and its shares are included in the prime index (AEX) on NYSE Euronext Amsterdam.

Chatham Rise Project Background

In 2010, a consortium comprising Widespread Energy and associated company Widespread Portfolios Limited, (“the Joint Venture or JV”) was granted an offshore prospecting permit by the Crown Resources division of the NZ Ministry of Economic Development covering an area of 4,726 km2 on the central Chatham Rise. The permit area, which is in New Zealand territorial waters, is located 450 km east of Christchurch and includes significant shallow seabed deposits of rock phosphate.. In March 2011 Widespread Energy acquired the 10% of the project then held by Widespread Portfolios and subsequently changed its name to Chatham Rock Phosphate Limited. The initial term of the permit is two years with rights to either extend the prospecting permit or apply for a mining licence.

Establishment of a rock phosphate industry in New Zealand territorial waters has a significant number of economic, environmental and market benefits.

The economic benefits include


  • Import substitution of up to $300 million annually
  • Possible exports to near markets
  • Reduced commodity risk for fertiliser manufacturers and farmers
  • Reduced foreign exchange risk for fertiliser manufacturers and farmers
  • Development of a new NZ industry
  • Generation of additional income for the local economy   
  • Security of supply (most rock phosphate is imported from North Africa and the Middle East) 

The environmental benefits include

  • Local product is significantly lower in cadmium and uranium than imported product
  • Much lower carbon footprint than imported product
  • If applied as a direct application fertilizer, CRP has less run off than super-phosphate, is applied less frequently, and is a more effective, slower acting product  
  • Extraction will occur in accordance with International Marine Mining environmental guidelines

The market benefits include

  • Much cheaper source than Morocco
  • Nominally 25+ years security of supply
  • Known extraction costs could enable less volatile price contracts, which will benefit fertiliser companies, farmers and agriculture outputs generally

Environmental considerations are essential and CRP has an ongoing wide-ranging programme of consultation with fishing, conservation, Maori and other interest groups around these matters.


On behalf of the Board
Chris Castle

Onekaka, 1 June 2011

Download the CRP Boskalis Announcement

 

Exercise of CRPOA Options and Allotment of Ordinary Shares

/

23 May 2011

Chatham Rock Phosphate has approximately 14.1 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 475,000 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 2,404,000, raising $240,400 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: 475,000 Exercise price: $0.10 per share Payment in cash: Yes Fully paid: Yes Percentage of class: 1.34% 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: 23 May 2011 Total number of securities on issue following allotments: 35,930,660 ordinary shares 13,676,276 listed options

View or download the Exercise of CRPOA Options and Allotment of Ordinary Shares - 23 May 2011 PDF