Allotment of Shares

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

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

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

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

 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

Chatham Rock Phosphate Presentation

Chatham_Is_April_16_2013.pdf

Ray Wood joins Chatham Rock Phosphate as Chief Operating Officer

19 March 2013

Chatham Rock Phosphate chief executive Chris Castle today announced Ray Wood is joining the company as Chief Operating Officer.

He will be based from 2 April at the CRP office at 93 The Terrace, Wellington.

“Ray has been a key part of our team for the best part of the last three years, working for us via GNS Science.  This is a very big step forward for CRP and underlines his enthusiasm for the project.  Ray has huge relevant experience, including being involved in research on the geology of the Chatham Rise in the 1980s.”

GNS, through Ray and his colleagues, has provided technical expertise to the project, particularly helping plan for and undertake exploration surveys. These surveys have collected geological and biological samples, geotechnical and geophysical data, and bathymetry data.

CRP will retain a relationship with GNS for technical support.

Ray is a Principal Scientist at GNS with areas of expertise in geology and geophysics (basin modelling, Continental Shelf delineation, crustal structure determination, marine geophysics, seismic stratigraphy and swath mapping).

Ray is a member of the Society of Exploration Geophysicists, American Association of Petroleum Geologists, Geoscience Society of New Zealand,  and Ocean Survey 20/20 (Member of Advisory and Co-ordinating Group)

For further information please contact Chris Castle on 021 55 81 85 or chris@widespread.co.nz

Allotment of Shares

11 March 2013

Allotment of Shares

Chatham Rock Phosphate Limited (NZX: CRP) advises that it has today issued 246,969 ordinary shares at an issue price $0.33 per share to qualified investors. This has resulted in CRP raising approximately $81,500 in new capital.

Chris Castle

Managing Director

Email: chris@crpl.co.nz

Class of security:

Ordinary shares

ISIN:

NZWENE0003S0

Number issued:

246,969 ordinary shares

Issue price:

$0.33 per ordinary share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

0.184%

Purpose of the issue:

For working capital purposes

Authority for the issue:

Board resolutions

Date of issue:

11 March 2013

Total number of securities on issue following allotments:

134,768,857 ordinary shares

CRP Progress outlined in speech at PDAC

6 March 2013 

Chatham Rock Phosphate is moving rapidly towards its target of production in 2015, Chief Executive Chris Castle told a New Zealand Government-hosted function at the Prospectors and Developers Association of Canada conference in Toronto.

PDAC is the pre-eminent annual event for the international mining community.

CRP holds a prospecting licence over 4726 sq km of ocean 450 km offshore in the New Zealand EEZ containing a well defined deposit of 25 million tonnes of medium grade rock phosphate.

“The in-situ value of this deposit is roughly $US4.3 billion. Our estimated recovery costs for life of mine are roughly $US2.3 billion in present dollars. So in simple terms the project could over time potentially earn $US2 billion.”

Mr Castle told guests the company had made remarkable progress over the past year.  In the two years after being granted the licence in February 2010 CRP raised about $US3 million of the $US25 million it needs. But in the past year, it has raised another $US15 million in difficult market conditions.

“Most of this has been very actively invested in the project, leading to the mining licence application in September 2012 and the imminent application for the environmental consent.

“The market value of the company is now $40 million.  We have signed contracts with Boskalis as our “contract miner’, which is now well advanced on the design process and Boskalis also became a shareholder.  We have three new cornerstone investors (Subsea, Boskalis and Odyssey Marine), shareholder numbers have increased 50 per cent and a visible and positive profile in New Zealand due to our extensive stakeholder communications programme.”

Mr Castle said already in 2013 CRP has appointed three new directors.  Other expected milestones will be filing an environmental impact assessment in the second quarter of the year.

“We also expect that our proposed overseas listing will finally occur and we expect to finalise further contract arrangements with Boskalis in the next few months.”

Mr Castle attributed some of the company’s rapid progress to fortuitous meetings at a variety of conferences and industry meetings.

“We met the right people at the right time, mostly by going to conferences.”  These included meeting Boskalis and other leading dredging companies, Odyssey Marine and through that company Subsea Minerals.  Key individuals include Cam McKenzie of Kenex, Robert Goodden (now a director) and Najib Moutia (now sales and strategy vice president).

Mr Castle commended NZP&M and GNS Science for showcasing to the mining world at PDAC what New Zealand has to offer in the way of mineral development opportunities.  “This includes access to historical information, a new legislative regime, a can-do attitude from officials, and a government that really, really wants to put some mineral development runs on the board.

“I’ve been at the NZP&M/GNS Science booth for quite a bit of the time during the last two days and it’s obvious that there is quite a bit of interest in what we have to offer. We just need to build on that. Casual contacts often lead somewhere.“

During his overseas trip Mr Castle has also met with senior managers at OCP, the Moroccan supplier of most of New Zealand’s rock phosphate, and attended an international fertiliser conference in Egypt.

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

CRP in for watershed year says Edison

1 March 2013

2013 is shaping up as a watershed year for Chatham Rock Phosphate, Edison Investment Research says in its latest update.

“CRP is moving closer to demonstrating a commercially and technically viable undersea mining project,’ Edison says.

“Risks still remain but the most significant are easing,” according to analyst John Kidd in a fresh assessment released today.

He notes that in the second half of 2012 CRP achieved two major milestones.  In July global dredging major Royal Boskalis subscribed for a 20% shareholding in CRP, while in September CRP lodged a mining licence application.  In December CRP announced it had reached agreement with Boskalis to complete detailed project design for mining operations.

“CRP is progressing the appraisal and potential development of a large permit area 450 km offshore from the east coast of New Zealand.  The area has been known since the 1950s to contain large deposits of high grade rock phosphate on or near the seabed, 400 m below the surface.  New Zealand is a significant consumer of rock phosphate as a feedstock for fertiliser manufacture, most of which is currently imported from Morocco.”

Edison has been employed by CRP to provide independent research in the absence of analysts preparing any on smaller NZX listed companies. Edison Investment Research is a leading international investment research company staffed by over 100 professionals. The team of 65+ analysts produce research on over 500 companies, making Edison one of the largest dedicated equity research teams worldwide. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries.

Wellington based Mr Kidd said in December “if and when CRP continues to pass further significant milestones over 2013-14, we expect the market to continue to de-risk CRP’s share price towards our un-risked valuation, currently at $1.87 a share.”

The share price is currently 36c, having reached a peak of 46c.

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