Opening of Share and Option Offer

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Chatham Rock Phosphate is pleased to advise that its offer of shares and options under a simplified disclosure prospectus opened from 5pm today following the conclusion of the FMA Consideration Period under the Securities Act 1978.

A copy of the prospectus is available on the website side bar and includes in it the application form and application instructions to participate in the offer.

The offer will close on 12 July 2013, unless extended in the manner discussed in the prospectus.

The offer is for new shares at $0.35 per share. For every three shares subscribed for, one option to acquire a share will be issued for an exercise price of $0.70. The offer is seeking to raise $4 million with the ability to seek over subscriptions up to approximately $10 million.

On behalf of the Board,

Chris Castle
Chief Executive Officer

Email: chris@crpl.co.nz

Opening of Share and Option Offer

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Chatham Rock Phosphate is pleased to advise that its offer of shares and options under a simplified disclosure prospectus opened from 5pm today following the conclusion of the FMA Consideration Period under the Securities Act 1978.

A copy of the prospectus is available on the website side bar and includes in it the application form and application instructions to participate in the offer.

The offer will close on 12 July 2013, unless extended in the manner discussed in the prospectus.

The offer is for new shares at $0.35 per share. For every three shares subscribed for, one option to acquire a share will be issued for an exercise price of $0.70. The offer is seeking to raise $4 million with the ability to seek over subscriptions up to approximately $10 million.

On behalf of the Board,

Chris Castle

Chief Executive Officer

Email: chris@crpl.co.nz

 

CRP showcases project at Fieldays

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12 June 2013 

Chatham Rock Phosphate is showcasing its project to significant investor interest at Mystery Creek Fieldays in Hamilton this week.

The Fieldays event, the largest agribusiness show in the southern hemisphere attracting more than 120,000 over four days, has already proved after one day to be a success for Chatham, according to Chief Executive Chris Castle.

“We’ve had a stream of people all day coming to our stall, wanting to know about the project, our phosphate product and the investment opportunity.

Mr Castle, chairman and corporate relations director Linda Sanders and other staff and directors are representing the company at the event.

“We’re being visited by farmers who have followed our project over the past couple of years in the media, by companies involved in the industry, by people who are simply curious to learn more about the project’s technical innovations and by loyal shareholders.”

Mr Castle said shareholders are welcome to come and visit the company’s representatives until 5pm Saturday, located at stall 5, row D in the main pavilion.

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

 

Chatham Rock Phosphate Ltd. registers simplified disclosure prospectus

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Further to the announcement of 4 June, Chatham Rock Phosphate is pleased to advise that it has today registered a simplified disclosure prospectus. A copy of the prospectus accompanies this announcement.

The offer will open on 14 June 2013 unless the FMA consideration period is extended under the Securities Act 1978. The offer will close on 12 July 2013.

The offer is for new shares at $0.35 per share. For every three shares subscribed for, one option to acquire a share will be issued for an exercise price of $0.70. The offer is seeking to raise $4 million with the ability to seek over subscriptions up to approximately $10 million.

On behalf of the Board,

Chris Castle 
Chief Executive Officer

Email: chris@crpl.co.nz

View the announcement on the www.nzx.com or download the Simplified Disclosure Prospectus.

Chatham Rock Phosphate Ltd. Registers Simplified Disclosure Prospectus

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Further to the announcement of 4 June, Chatham Rock Phosphate is pleased to advise that it has today registered a simplified disclosure prospectus. A copy of the prospectus accompanies this announcement.

The offer will open on 14 June 2013 unless the FMA consideration period is extended under the Securities Act 1978. The offer will close on 12 July 2013.

The offer is for new shares at $0.35 per share. For every three shares subscribed for, one option to acquire a share will be issued for an exercise price of $0.70. The offer is seeking to raise $4 million with the ability to seek over subscriptions up to approximately $10 million.

On behalf of the Board,

Chris Castle 
Chief Executive Officer 
Email: chris@crpl.co.nz

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