Chatham Rock Phosphate well advanced with TSX.V dual listing plans
/16 July 2012
Chatham Rock Phosphate is planning to seek a dual listing of CRP shares on the Toronto Stock Exchange secondary (venture) board (the TSX.V).
Directors have resolved to adopt this approach, which effectively separates the listing process from the normally associated financing, usually described as an Initial Public Offer or IPO.
CRP has sufficient shareholders required to dual-list on a number of overseas exchanges without undertaking an IPO.
“Adverse market conditions still prevailing in overseas markets continue to delay the company’s earlier decision to undertake an IPO,” Managing Director Chris Castle said. “However the directors remain determined to provide a more efficient market for the company’s shares.”
Mr Castle said the Canadian market is the most logical market to join, given the number of fertiliser companies already listed there.
“It will provide access to an investor market familiar with our industry and provide investors with a basis for comparison.”
The process to dual list requires the filing of an application, the preparation of both an information memorandum similar to a prospectus and a technical report. As these reports were already being prepared in mid 2011 in anticipation of the IPO, they simply require updating, and this process is now well underway.
“We are also discussing, with a number of parties, the appointment of a broker sponsor who will also need to prepare a report.
“The dual listing should make it easier to continue to source funding by means of private placements in the short term. We still intend to undertake an IPO when market conditions improve,” Mr Castle said.
A number of other New Zealand companies are listed or intend to list on the TSX.V.
Chris Castle
Managing Director CRP
+64 21 55 81 85 or chris@widespread.co.nz
Boskalis and Chatham agree on next stage of CRP project
/8 July 2012
Royal Boskalis Westminster N.V. (Boskalis) is now working on the next stage of Chatham Rock Phosphate’s undersea project, following successful meetings in the Netherlands.
Representatives from the two companies have just concluded a number of meetings in Papendrecht, the Netherlands with Boskalis making it clear it wishes to proceed to the next stage of development.
CRP and Boskalis are now entering detailed discussions on agreements detailing the way forward.
The two companies have been working together for the past year since Boskalis was appointed as the project’s technical partner to design a process to extract phosphate nodules from the seabed. CRP appointed Boskalis in June 2011 as a result of a selection process involving three of the four industry leaders.
“We have developed a great working partnership with Boskalis and a wide range of their senior managers, engineers and technical advisers,” Managing Director Chris Castle said. “Boskalis people are very focused on the success of this project and we are working well together.
CRP holds an offshore prospecting permit covering an area of 4726 km2 on the central Chatham Rise. The permit area, in New Zealand territorial waters, is located 450 km east of Christchurch and includes significant shallow seabed deposits of rock phosphate. 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 meetings considered a detailed report from Boskalis on a proposed extraction method for the rock phosphate resource. The report had previously been analysed by four international experts advising CRP who also attended the meetings.
Also discussed were initial findings from the wealth of environmental, geotechnical and engineering data collected during four cruises on the Chatham Rise over 48 days during the 2011-12 summer.
The next stage of the project for the remainder of 2012 will involve Boskalis refining its methodology for recovering and separating the phosphate nodules, applying adapted and proven technologies. The key considerations include capital and operating costs, minimisation of possible environmental effects and the optimisation of operating efficiencies.
Boskalis is also closely involved in associated environmental impact studies presently underway.
Mr Castle said the continuing enthusiasm shown by Boskalis was an extremely significant vote of confidence by such a major world player.
“We have established a great partnership and the breadth of skills and experience that Boskalis can draw on internationally is something we could never hope to tap into by ourselves.”
Peter Berdowski, CEO of Boskalis: “We see the fledgling deep-sea mining industry as an interesting growth opportunity that fits perfectly with our position as the leading dredging and marine experts. The Chatham Rise project allows us to draw on our wealth of expertise to contribute to the successful development of this unique project together with our partner Chatham.”
Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. Boskalis provides creative and innovative 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. It offers a wide variety of marine services through SMIT and has other 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 1,100 units and operates in over 75 countries across six continents. Including its share in partnerships, Boskalis has approximately 14,000 employees.
Chris Castle
Managing Director CRP
+64 21 55 81 85 or chris@widespread.co.nz
View or download the "Boskalis and Chatham agree on next stage of CRP project" PDF
Allotment of Shares to Qualifying Investors
/6 July 2012
Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 1,099,783 ordinary shares at an issue price $0.23 per share to two qualified investors. This has resulted in CRP raising approximately $250,000 in new capital.
Chris Castle
Managing Director
Email: chris@crpl.co.nz
Class of security: Ordinary Shares
ISIN: NZWENE0003S0
Number issued: 1,099,783 ordinary shares
Issue price: $0.23 per ordinary share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 1.40%
Purpose of the issue: For working capital purposes
Authority for the issue: Board resolutions
Date of issue: 6 July 2012
Total number of securities on issue following allotments: 79,675,518 ordinary shares
Allotment of Shares to Subsea Investments
/20 June 2012
Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 2,411,219 ordinary shares to Subsea Investments II, LLC (Subsea) at an issue price of $0.20 per share.
This allotment arises from a partial conversion of the convertible loan advanced by Subsea as approved by shareholders in April this year. This partial conversion reduces the amount owed by CRP under the loan by approximately $500,000 to approximately $3.35 million. Subsea’s percentage shareholding in CRP increases to 19.99% as a result of this allotment.
As previously advised to shareholders, it is intended to seek shareholder approval under the Takeovers Code to permit full conversion of the loan and for Subsea to increase its shareholding percentage above 20%. Under the convertible loan agreement CRP has until mid-October 2012 to seek this approval from shareholders.
Chris Castle
Managing Director
Email: chris@crpl.co.nz
Class of security: Ordinary Shares
ISIN: NZWENE0003S0
Number issued: 2,411,219 ordinary shares
Issue price: $0.20 per ordinary share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 3.17%
Purpose of the issue: Partial conversion of the convertible loan advanced by Subsea
Authority for the issue: Board resolutions
Date of issue: 20 June 2012
Total number of securities on issue following allotments: 78,575,735 ordinary shares
Allotment of Shares to Odyssey Marine Exploration, Inc.
/18 June 2012
Further to the announcement of 17 May, Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 9,320,348 ordinary shares at an issue price $0.23 per share to Odyssey Marine Exploration, Inc. (Odyssey) in satisfaction of payment for services under a charter agreement.
Cruise costs incurred under the charter agreement total approximately USD$5.68 million. US$4 million of the total costs have been paid by CRP in cash.
In accordance with the terms and conditions of the charter agreement, CRP has elected to pay the remaining fees by issuing Odyssey shares in CRP.
This is a positive development for CRP as it allows us to maintain working capital in order to fulfil our work programme. We welcome Odyssey as a Substantial Shareholder in CRP.
Chris Castle
Managing Director
chris@widespread.co.nz
Class of security: Ordinary Shares
ISIN: NZWENE0003S0
Number issued: 9,320,348 ordinary shares
Issue price: $0.23 per ordinary share
Payment in cash: No
Fully paid: Yes
Percentage of class: 12.237%
Purpose of the issue: Payment of fees invoiced to CRP under charter agreement with Odyssey Marine Exploration, Inc
Authority for the issue: Board resolutions
Date of issue: 18 June 2012
Total number of securities on issue following allotments: 76,164,516 ordinary shares
Chatham Rock Phosphate pegs Namibian phosphate ground
/Chatham Rock Phosphate today announced it has applied for five prospecting licences offshore Namibia covering about 45 square kilometres.
The licences, to prospect for undersea phosphate are at water depths similar to the licence area CRP holds on the Chatham Rise, offshore New Zealand.
Managing director Chris Castle said the company’s strategy is to extend the use of the mining capability it has developed to extract undersea phosphate.
“If the project proves successful it will significantly increase the marine rock phosphate resources under our control.
“We think it makes good sense to use the applied technology we are developing in New Zealand elsewhere and Namibia is the most advanced in the development of offshore phosphate reserves.”
Australian company Minemakers Ltd’s Sandpiper phosphate sands project is located about 60 km off the coast of Namibia and has an estimated resource of 60 million tonnes.
“We’re buying into an area that is very prospective, with several other companies undertaking exploration in well proven areas. The conditions are similar to what we already know. Based on the extensive work already completed by Sandpiper we believe the extraction costs appear attractive.”
CRP has also contracted a local agent, formed a local subsidiary company and met with local officials. “The people in the Ministry of Mines & Energy and in the Geological Survey were particularly helpful and we made significant progress in the short time we were there.
Mr Castle said he understood the processing of the licence applications could take a few months.
Chris Castle
Managing Director, Chatham Rock Phosphate Limited
021 55 81 85 or chris@widespread.co.nz
Namibian continental shelf application areas:
Najib Moutia, fertiliser sales expert, joins Chatham Rock Phosphate team as Vice President, Strategy
/7 June 2012
Chatham Rock Phosphate has appointed a former senior business development executive at the world’s largest phosphate producer OCP, as Vice President Strategy.
Mr Najib Moutia, who worked for the Morocco-based giant for 30 years, will head CRP’s worldwide business development and sales.
Managing director Chris Castle said he is delighted Mr Moutia, who has such invaluable industry expertise and contacts, is joining the CRP team.
“Najib’s focus for more than 20 years has been South Asia and the Pacific and he is incredibly well connected. He also has a master’s degree in chemical engineering, and so he knows exactly what products suit which companies or countries. He has an encyclopedic knowledge of the industry and just about everyone of note in it.”
Mr Moutia, now based in Montreal, will provide both business development and technical support. He is also fluent in English, French, Arabic and Spanish. Among his achievements have been growing OCP sales in Pakistan from $US2 million to $US500 million, making OCP the dominant New Zealand and Australian supplier and strongly growing the Thai and Pakistan markets.
Mr Moutia said he believes his key strength is in combining his technical knowledge with his customer relationship skills.
“I am very familiar with the New Zealand market and its key players and I have a close understanding of other potential markets for Chatham Rock Phosphate.
“This is a very exciting project and I am delighted to be part of the team.”
Chris Castle
021 55 81 85 or chris@widespread.co.nz
CRP 2012 Annual Report
/Financial Result
Your directors submit the audited financial statements of Chatham Rock Phosphate Limited (CRPL) for the year to 31 March 2012. The trading result for the period was a loss of $741,000 (2011 loss $629,000).
An analysis of the result is provided in the table below
Year to 31 March 2012
($,000)
Year to 31 March 2011
($,000)
Income 20 84 Administrative expenses 761 630
Exploration costs written down
83 Impairment on investments
Net Profit (loss) before income tax
(741) (629) Income tax Net profit (loss) after tax (741) (629)
The increased reported deficit for the year to 31 March 2012 reflected a higher level of corporate activity.
Issued capital during the period increased from 34,526,660 to 64,710,179 shares. Shareholders’ Funds increased during the period from $4,603,000 to $8,245,000.
Operating highlights
For Chatham Rock Phosphate the past year has been one of major milestones in progressing our rock phosphate development project.
We achieved considerable success in raising further equity to finance the work programme and made enormous advances towards our key objective of starting to mine the deposit in 2014.
Our two main areas of focus this year have been the significant interaction with Boskalis on their detailed designs of the phosphate recovery system, and preliminary work required before we apply for a mining licence and a marine consent.
Very complex information is required for these two approvals and it involves highly technical scientific and engineering evaluation as well as widespread ongoing consultation with a range of government and non government organisations including the trade, resource, primary industry, environmental, conservation, iwi and community sectors.
In addition we have been building our public profile in the investment and industry sectors, both in New Zealand and internationally.
The progress achieved demonstrates the determination and enthusiasm of a highly skilled project team with a wealth of technical and commercial experience.
Capital Raising
In June 2011 we raised a further $1.6 million from the exercise of all the June 2011 options.
In late 2011 we decided to delay an Initial Public Offering on an international stock exchange because of poor market conditions and a decision was also made to fund ongoing activities by seeking existing shareholder support by means of a share purchase plan. This raised approximately $325,000 and in addition placements of 986,110 shares were made to qualified investors at 20c per share.
In February 2012 agreement was reached with United States-based private equity fund Subsea Investments to progressively invest $USD 6 million in the company. At the time of writing US$5.3 million of this had been invested.
As part of that investment, Subsea also holds 30 million options which, if all exercised, would generate an additional $US9 million in new capital for CRP.
Although it remains a priority to secure full funding for the project, we are considering alternative ways of financing this progressively through to the start of mining. These options still include an IPO on an international market when market conditions improve. Whichever option we select, we can act quickly because the documentation is well advanced, having prepared a draft prospectus and a project technical report.
As part of building the company’s presence in international capital markets, CRP has entered an arrangement with Edison Investment Research to produce independent research over the next year. Edison is one of the largest companies of its type worldwide with more than 300 corporate clients, including a big focus on mining research with nine dedicated analysts and coverage of 75 mining companies on major exchanges around the world.
CRP decided to invest in the research as investors and share brokers often ignore our company as an investment opportunity because regulations governing financial
advisers tend to discourage them from making recommendations because no third party research on the company presently exists.
Research cruises
Scientists and engineers are now in the midst of the mammoth job of studying the wealth of data gathered during 48 days of surveying on the Chatham Rise.
CRP used the 100 m Dorado Discovery, based in New Zealand over the summer, to conduct four research surveys, using a range of high tech equipment and collected 35 tonnes of phosphate rock and sandy silt as well as a wealth of technological data. Equipment used include a remote operated vehicle (ROV), as well as box coring, vibrocoring and grab sampling equipment.
The data and samples acquired by the four cruises will be used for:
The application for the mining licence
The environmental impact assessment report required to accompany the application for a marine (environmental) consent
Refinement of the design of the phosphate recovery and on-board separation systems
Acceleration of the rock phosphate beneficiation studies presently under way
Further design work in respect of the on-board glauconite separation systems
New fertiliser market development.
The information also contributes significantly to the store of public good information used by scientists to understand New Zealand’s oceanic environment.
The surveys collected geophysical data in December, bottom samples in February, environmental data in March and geotechnical data in April. The project team involved scientists, engineers and other technical staff gathered from the United States, Netherlands, Germany and New Zealand who put together the trip plans in just a few weeks.
Joining the last cruise was Dr Hermann Kudrass, who 30 years ago explored the seabed of the Chatham Rise. Dr Kudrass led a joint New Zealand-German government expedition on the German government research vessel Sonne in 1981 to explore the extent of phosphorite deposits distributed on the Rise seabed and then wrote a book discussing his findings.
December cruise:
The survey mapped 715 km2 of the sea floor with multi-beam swath bathymetry (seafloor topography) data and 199 km2 with side-scan sonar data. It collected 263 km of sub-bottom seismic reflection data and magnetic data.
The survey collected information about the shape and character of the sea floor and the properties of the shallow sediments that will help understand the distribution of the phosphate resource.
The data guided planning for subsequent surveys, assisted the development of mining technology and strategy, and contributed to the identification of priority areas for the first few years of mining. The ship recovered two oceanographic moorings that had collected current and turbidity data, now downloaded for processing and analysis.
The new detailed bathymetry data show the irregularity is primarily the result of underlying geology and iceberg scours up 15 m deep, 400 m wide and tens of km long. The data obtained are valuable for the detailed design of the dredging operations.
February cruise:
The survey collected 50 precisely located grab samples, bringing more that 35 tonnes of sediment back to analyse nodule content and distribution and test separation techniques. The bulk sediment also brought in considerable environmental data that contributed to the March environmental survey.
The project team conducted four ROV dives (the first ever on the Chatham Rise) to inspect the sea floor before and after grab sampling and to test the physical properties of the sediment, as well as expanding the geophysical mapping of the sea floor.
March cruise:
The team surveyed 13 of the environmental areas identified by NIWA (eight target mining areas and five reference areas outside mining zones) and collected more than 77 km of ROV video transects, recording more than 150 hours (or 700 Gb) of video and 62,000 observations from the video transects as well as 17,000 still photos.
In addition, the cruise collected 130 box cores from 38 sites, 3 km2 of high-resolution bathymetry and backscatter data and more than 500 km2 of regional bathymetry data. The ROV stopped on 12 occasions to take biology samples or close-up photos. The sampling and photography will enable detailed assessment of animals that live on the seafloor.
April cruise:
The cruise, with Boskalis engineers on board, involved the first investigation that
specifically focused on properties of the seafloor as they relate to design and construction of a mining machine. Four ROV dives tested the geotechnical properties of the sand and chalk, including how hydraulic jets could loosen the sediment without creating high turbidity before the phosphate and associated sediment can be pumped on board for separation.
Cone Penetration Test (CPT) measurements were done at 129 sites, collecting information about sediment strength, hardness, friction and porewater pressure. Fifteen short vibrocores returned 12.6 m of sediment. A vibrocorer uses vibration to work the core tube into the seabed as distinct to a corer that relies on gravity alone for penetration into the sediments. The cruise took four box core samples for environmental and geotechnical analysis.
Boskalis partnershp
Central to the project is our partnership with the world’s largest integrated dredging company, Royal Boskalis Westminster. Boskalis is undertaking a number of projects that collectively comprise phase one of the planned work programme, including design engineering, logistics studies and preliminary design work and environmental studies including turbidity assessments. These projects will lead to phase two activities incorporating final design, detailed engineering, construction and testing.
All of the data being analysed will be used in the design of the mining system bringing together technologies already used in a wide variety of extraction systems. Considerations range from evaluating the nature of the material and where it is deposited, to how it is lifted, separated and returned, the vessel design, and off- loading port selection.
The design process also includes developing a model to assess the environmental impacts of each stage of extraction. The research is looking at the potential impact of extraction and sediment deposition on local ecosystems and identifying sensitive species and areas of special environmental conservation, as part of habitat mapping.
The modelling and analysis will consider the natural dynamics of the area – the variation of water flow speed and direction over depth, turbidity, light attenuation in the water column, occurrence of upwelling events, natural settlement behaviour of fines, possible density currents and ecosystem resilience.
The research Boskalis has conducted has identified four main elements relating to the extraction of phosphate that will contribute to environmental changes. These are:
Removal of the top layer from the seabed
Turbidity generated by the extraction and sediment return process
Deposit of returned sediment, mainly on just mined areas of the seabed
Possible changes to and mixing of the water column, due to the outflow of water at a slightly different depth than the intake.
Boskalis environmental expert Gerard Van Raalte visited New Zealand in November to meet a range of government and other stakeholders. Mr Van Raalte is a senior Boskalis manager with a special focus on the environmental aspects of dredging and marine infrastructure design.
He is team leader of the Building With Nature research programme, initiated by Boskalis to gain an industry-wide insight into the impact hydraulic engineering projects have on ecosystems, with the aim of achieving a sound balance between ecological, economic and social sustainability. The Boskalis approach has been very successful in managing potentially contentious projects in environmentally sensitive locations and it was one of the key reasons CRP selected the company as its partner.
Environmental focus
All of the work being done to advance the project has environmental considerations as a key focus. One of our first steps was to undertake a full review of the existing environmental knowledge of the area and any other related information of use.
We commissioned NIWA to study the wider Chatham Rise ecosystem, as part of the work that will contribute to the Environmental Impact Report being coordinated by consultants Golder Associates as part of the planned application for a marine consent.
NIWA has already completed a number of reports for us concerning various aspects of the Chatham Rise seabed environment. These are available to interested groups to ensure there can be an informed discussion about what actually exists on and above the Chatham Rise and can put into context our planned activities there.
EEZ legislation
In June the Government confirmed it would enact legislation to manage the environmental impacts covering the Exclusive Economic Zone and extended Continental Shelf. We believe it will remove a lot of uncertainty and provide a framework to allow all of those with an interest to contribute to decisions about how the environmental effects of resources are administered. If the timeframe is achieved we expect to be among the first companies to use the new law.
CRP submitted on the Bill to provide the Local Government and Environment Select Committee with an early example to consider when evaluating the proposed new legislation.
We wanted to give the Select Committee an insight into how companies such as ours will be affected by the legislation and how we are practically planning to manage our environmental responsibilities. CRP is providing the Environmental Protection Agency,
the Ministry for the Environment and New Zealand Petroleum and Minerals with the opportunity to consider facets of the proposed regime as a “live” case study.
We are pleased the Bill paid heed to the balance between environmental considerations. Even within an environmental context there are offsets such as between the environmental benefits of our product and any impacts caused by the extraction of rock nodules. Chatham Rock Phosphate can offer benefits that include a reduced carbon footprint through much lower transport costs, fewer run-off effects on farmland when using it as a direct-application product and the low cadmium content of the product.
Market development
We have had an ongoing dialogue with both local and international fertiliser sector companies. Market development work has been undertaken in Australia and throughout South-East Asia. Responses to initial contacts made have been encouraging and we are confident we will have a healthy forward order book well before we are in full production.
We are encouraged by the interest of potential buyers in 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.
The scoping study underway will determine the feasibility and economics of beneficiating our rock phosphate (effectively raising the level of contained phosphorous). If successful the indications are that we will be able to sell more product and for a better unit price.
Glauconite deposits
CRP has undertaken a preliminary analysis that shows there are significant quantities of glauconite contained within the seabed sandy silt layer that also contains the phosphate nodules. Boskalis is considering a possible recovery system to gather both the phosphate nodules and the glauconite.
Glauconite is a mica-type clay mineral containing potassium, which makes it (like the Chatham Rise rock phosphate) an ideal slow release direct application fertiliser. It can also be used in glass manufacture and for paint pigments. Recent technological advances suggest that it’s now possible to separate potassium from glauconite, which could create another market opportunity as the demand for potassium (also known as potash) is substantial.
Some of the samples gathered in two areas within our licence not previously explored and which had not previously been tested for the presence of rock phosphate nodules. The good news is that rock phosphate nodules were found to be present in both areas.
Licence progress
In January, CRP formally advised NZPM of its plans for the second term of its prospecting licence. The four-year licence was granted in February 2010 for two two- year terms and we more than met all the conditions of the work programme for the first term of the licence. Among the highlights of work achieved were:
Forming a strong business alliance with engineering design and logistics company Royal Boskalis Westminster
Commissioning a study (with the support of New Zealand Trade and Enterprise) by Bateman Advanced Technologies and Mintek to assess whether beneficiation (to raise phosphorous and lower calcium carbonate levels) is feasible, thus reducing transport costs and improving processing versatility
Extensive stakeholder engagement and consultation
Literature review and data compilation
Digitising relevant technical data and developing a database
Underwater radiometric geophysical evaluation
Sediment sampling
Environmental baseline data collection
Current and turbidity sensor data collection
Environmental planning.
New neighbour
Earlier this year, L&M Group, which has a wide range of petroleum exploration and onshore mining interests, was granted a permit by New Zealand Petroleum and Minerals to explore seafloor phosphate deposits over a wide area to the west, south and east of the permit held by CRP. We welcomed the move, noting it reinforced the enormous potential value we see in the area, constantly being confirmed as we gather new technical data. L&M Group holds a large area surrounding CRP’s licence area, which has more unknowns but which could have real prospectivity for both rock phosphate and glauconite. We are keen to explore ways we can cooperate and share knowledge.
Post balance date
On 15 May the EEZ Bill was referred back from the Select Committee and is still expected to be enacted later this year. Of particular relevance to CRPL is the date on which the related regulations come into effect, as our Marine Consent application
cannot be submitted until then. This could also affect the timing of the mining licence application.
Outlook
The project continues to maintain momentum. We have a strong focus on setting objectives and achieving ongoing milestones, have met all our key deadlines so far and we are determined to keep delivering on our goals.
For and on behalf of the Board,
Keith T Hindle Chairman
Chris D Castle Director
Onekaka
25 May 2012
View the Chatham Rock Phosphate Ltd. Finiancial Statements for the year ended 31 March 2012
Chatham Rock Phosphate spends extra money on environmental research
/17 May 2012
Extensive environmental research has added most of an extra $1.7 million spent by Chatham Rock Phosphate on cruises using Odyssey Marine Exploration’s Dorado Discovery during the summer.
“We decided to extend the time the Dorado was out at sea to gather significantly more information that is of immense value for completing our application for a mining licence, seeking environmental consents and determining the final technical aspects of the extraction techniques designed by Boskalis to recover rock phosphate,” managing director Chris Castle said.
“Most of the extra costs were on the environmental cruise. Collecting that extra information took significantly more time but we thought it was important data to collect.”
The team on the Dorado surveyed 13 of the environmental areas identified by NIWA (eight target mining areas and five reference areas outside mining zones) and collected more than 77 km of remote operating vehicle (ROV) video transects, recording more than 150 hours (or 700 Gb) of video and 62,000 observations from the video transects as well as 17,000 still photos.
In addition, the cruise collected 130 box cores from 38 sites, 3 km2 of high-resolution bathymetry and backscatter data and more than 500 km2 of regional bathymetry data. The ROV stopped on 12 occasions to take biology samples or close-up photos.
The sampling and photography will enable detailed assessment of animals that live on the seafloor.
The information, targeted at the Rise’s significant phosphate resource, will also contribute significantly to the store of public good information used by scientists to understand New Zealand’s oceanic environment.
Odyssey and CRP had earlier agreed CRP could meet some of the costs payable to Odyssey through an issue of shares as well as by cash. The total costs payable to Odyssey for its work is approximately USD$5.7 million. Of this amount, USD$4 million has already been paid to Odyssey in cash. Although a final decision has not yet been made, the remaining approximately USD$1.7 million may be settled through an issue of shares to Odyssey.
The board of CRP will decide in mid June if shares are issued to Odyssey will be through a placement of shares, which would be at NZD$0.23 per share.
“If the share issue occurs we will be welcoming Odyssey as a substantial shareholder in CRP,’ Mr Castle said. “Odyssey has been a valued partner to CRP with its work having played a significant role in progressing our project.“
Odyssey undertook four surveying cruises for CRP from December to April. These cruises have provided CRP with a wealth of scientific data about its offshore permit area as well as bulk samples of rock phosphate for further analysis.
“The work done on the cruises has given a major boost to the project’s considerable momentum. We remain very focused on delivering on our goals.”
For and on behalf of the Board,
Chris Castle,
Managing Director
021 55 81 85 or chris@crpl.co.nz
+64 21 5581985
chris@crpl.co.nz
PhosphateKing