NZX Announcement: CRP files Marine Consent application – starts six month decision process

Dear Chatham Rock Phosphate shareholder,

The announcement below was filed with NZX earlier this morning and will be released to the market before it opens.

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

Media Release

15 May 2014

 CRP files Marine Consent application – starts six month decision process

Chatham Rock Phosphate yesterday submitted its formal marine consent application to the Environmental Protection Authority.  Should it be accepted as complete, the six-month formal process is expected to lead to a decision in November.

The application, representing four years’ work and $25 million in investment, is the second seabed mining proposal under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012, and will be considered through a full public process by an expert panel appointed by the Environmental Protection Authority (EPA).

The marine consent is the only major licence CRP now needs, having gained a mining permit for its phosphate extraction project in December 2013.  CRP submitted a draft application to the EPA on 31 March 2014 and since then has been working with the EPA to address the EPA's preliminary comments on its application.

Managing Director Chris Castle said he was confident the application would meet the tough standard demanded by the law. 

“Our focus has always been two-fold: base the analysis on science and consult with all interested parties to ensure their concerns are addressed through the process.  Input from both stakeholders and scientists is critical to make sure all the bases are covered. 

“The results of this analysis and consultation are that we understand what the environmental impacts are likely to be and we can clearly demonstrate how we can minimise and mitigate them. We know this project can deliver to its shareholders financially, and to other stakeholders in terms of environmental requirements.”

CRP’s phosphate resource, located on the seabed of the Chatham Rise, offers fertiliser security for New Zealand’s primary industry, has big export and import substitution potential, as well as environmental benefits as a direct application fertiliser, making it a project of national significance.

The main 400-plus page document comprising the Environmental Impact Assessment is supplemented by 35 appendices, mostly scientific reports.  The information will be publicly available on the EPA website and via a link on www.rockphosphate.co.nz should the EPA accept the application as complete.  All interested parties will then able to read the information, make submissions and attend public hearings during the next six months.

Please note Chris Castle is currently in the UK so for further information please contact Linda Sanders, Corporate Affairs Director, linda@crpl.co.nz or 027 471 5593

NZX Announcement: Completion of Rights Issue and AIM Listing Update

Dear Chatham Rock Phosphate Shareholder,

This announcement was filed with NZX last night and has just been released this morning.

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

22 April 2014

Completion of Rights Issue and AIM Listing Update

Chatham Rock Phosphate Limited (NZX: CRP) is pleased to advise that it has today allotted new shares under its rights issue to existing shareholders.

The rights issue has been extremely well supported with $1,795,315.95 subscribed out of a maximum of approximately $2.1 million under the offer. Net of oversubscriptions of $182,500, a total of $1,612, 800 was subscribed.  

There was strong interest in the oversubscription facility where applicants could apply for additional shares in excess of the rights they held. A total of 4,016,934 shares were applied for in the oversubscription facility and with this facility limited to 2.8 million shares CRP has had to scale all oversubscription facility applications in accordance with the prospectus. Affected applicants will be refunded excess application monies shortly.

As previously advised the rights issue was fully underwritten and the shortfall of 3,670,690 shares will be placed with the underwriter in approximately one weeks’ time. Full details of today’s allotment to applicants are set out below.

The Board of CRP thanks shareholders for their outstanding support of this offer.

AIM Listing Update

As previously advised to the market CRP intends to undertake a capital raising and secondary listing on London’s AIM market. Considerable work has been progressing in this respect. CRP is pleased to advise that it has secured its advisory team in this respect and has engaged:

·         Nominated Advisor and Broker: Daniel Stewart & Company plc.

·         Lead Financial Advisor and Broker: Wimmer Financial LLP.

·         UK Legal Adviser: Fasken Martineau.

·         Investigating Accountant: BDO.

It is intended to raise approximately NZ$8 million through this capital raising. Pricing for the capital raising has not yet been determined. The proceeds will be applied principally to the costs associated with CRP’s marine consent application and meeting CRP’s overheads ideally until all approvals and contracts are in place for our rock phosphate project on the Chatham Rise.

At present CRP is working through due diligence requirements associated with the capital raising and AIM listing. It is intended that the offering will commence in June. 

Chris Castle

Chief Executive

Email: chris@crpl.co.nz

 

Class of security:  Ordinary shares

ISIN:  NZWENE0003S0

Number issued:  10,751,839 ordinary shares

Issue price:  $0.15 per ordinary share

Payment in cash:  Yes

Fully paid:  Yes

Percentage of class:  6.93%

Purpose of the issue:  As set out in rights issue prospectus

Authority for the issue:  Board resolutions and NZAX Listing Rule 7.3.4

Date of issue:  22 April 2014

Total number of securities on issue following allotments:  155,157,137  ordinary shares

Media Release: Chatham Rock Phosphate files draft Marine Consent application

Media Release

31 March  2014

Chatham Rock Phosphate today submitted a draft Marine Consent application to the Environmental Protection Authority - the culmination of four years’ work and more than $25 million in investment.

The Marine Consent is the only major licence CRP now needs, having gained a mining permit for its phosphate extraction project in December. The EPA, New Zealand’s environmental regulator, is expected to decide on CRP’s application in November after a full public process.

Including the proceeds of the rights issue presently underway, Chatham has raised over $27 million from its existing shareholders and through placements to qualified investors to finance extensive spending on science-based research.

Managing Director Chris Castle said the CRP team was very proud of the work contained in the application.

“Rigorous research by scientists has considered the relevant facets of what we propose and demonstrates how we can minimise and mitigate environmental impacts.

“We sincerely appreciate the input from all of our stakeholders that has contributed to our thinking. We believe our work will satisfy any issues raised.

“Having done our homework, we know this project stacks up technically, environmentally and financially.”

Mr. Castle said the CRP’s phosphate resource, located on the seabed of the Chatham Rise, offers fertiliser security for New Zealand’s primary industry, has big export and import substitution potential, as well as environmental benefits, making it a project of national significance.

The Environmental Impact Assessment forming the centrepiece of the Marine Consent application will be considered under the Exclusive Economic Zone environmental consenting regime that came into force in June last year as part of the EEZ and Continental Shelf (Environmental Effects) legislation.

The main 300-plus page document is supplemented by more than 30 appendices, mostly scientific reports and models. The information in the EIA will be publicly available on the EPA website, and via a link on rockphosphate.co.nz, once the EPA has accepted the application as complete.  People are then able to read the information, make submissions and attend public hearings during the next six months.

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

NZX Announcement: Update to Rights Issue Timetable

Dear Chatham Rock Phosphate shareholder,

This announcement was released to NZX this morning.

Regards,

Chris Castle

Chief Executive Officer

Chatham Rock Phosphate Limited

Email: chris@crpl.co.nz

Cell: +64 21 558 185

Skype: phosphateking

www.rockphosphate.co.nz

 

24 March 2014

Update to Rights Issue Timetable

Further to the announcements last week, CRP advises that there has been an adjustment to the timetable for its rights issue.

The key change to the timetable is that the rights trading period will now commence this Thursday, 27 March, the same date as the Record Date. The offer period remains the same as previously advised.

An updated timetable for the offer is set out below.

Chris Castle

Chief Executive

Chatham Rock Phosphate Limited

 

Wednesday, 18 March 2014

Prospectus Registration Date

Wednesday, 19 March 2014 until Wednesday, 26 March 2014

FMA consideration period

Thursday, 27 March 2014

Rights trading commences on NZX Alternative Market

Thursday, 27 March 2014 (5pm)

Record Date for determining entitlements

 Friday, 28 March 2014

Prospectus and Entitlement and Acceptance Form mailed to Eligible Shareholders

Friday, 11 April 2014

Rights trading ceases (5.00pm)

Thursday, 17 April 2014

Offer closes (last day for receipt of Entitlement and Acceptance Forms by the Share Registrar) (5.00pm)

Tuesday, 22 April 2014

Allotment date and expected commencement of trading of New Shares applied for by Existing Shareholders.

 Tuesday, 29 April 2014

Allotment date for Shortfall subscribed for by Underwriter.

 

About CRP

CRP holds a strategic, multi-million tonne organic rock phosphate deposit uniquely positioned to access Asian and Australasian fertiliser markets. It was granted a 20-year mining licence in 2013 and has recently applied for new prospecting licences both east and west of its existing licence areas that could significantly increase the scope of resources. CRP is currently finalising its Environmental Impact Assessment for its Marine Consent application.

CRP has appointed Wimmer Financial to manage international capital raising for the company with a view to seeking an AIM Listing in the near future. Wimmer Financial is an international corporate advisory firm, specialising in natural resources, with a global reach through a network of close partners and clients all over the world.

CAE Article: Chatham Rise rock phosphate – a resource of national significance

To read the full article on Centre for Advanced Engineering website - Click here

 

Chatham Rise rock phosphate - a resource of national significance

by Chris Castle

Chatham Rock Phosphate (CRP) will soon apply for a marine consent to undertake seabed mining at 400 m water depth, about 450 km from New Zealand.

While in some ways it will be a ground breaking first, CRP’s business plan is founded on using existing technology – but in an innovative way. The project has captured wide interest in science, mining and capital markets communities in New Zealand and internationally.

New Zealand scientists discovered the phosphorite resource on the crest of the Chatham Rise in the 1950s. It was studied in detail over the next three decades, including by Fletcher Challenge in the early 1980s, spending an estimated $70 million in today’s dollars to identify its scope and potential uses. However the price of phosphate was then relatively low and the economics of developing an offshore resource could not compete with more accessible sources.

Fast-forward another two decades and the price of phosphate soared from $US40/ton to more than $US400/ton and the economics of the seabed deposit looked much more attractive, especially given advances in marine technology. CRP, a small New Zealand mining company, saw the opportunity, secured a licence and identified a resource of at least 35 million tonnes – at least a 20-year supply at expected production rates.

The first reaction from people is usually “you’re going to do what… where?” when I explain the idea. But when we took the proposal to the world’s largest dredging companies in the Netherlands and Belgium, we received three serious proposals for how the resource could be extracted.

CRP chose Royal Boskalis Westminster’s concept. It proposes using a conventional dredging mechanism attached to a flexible pipe to suck the top 30 cm of sandy silt up to a 230 m mining vessel. Mechanical sieving will separate the phosphate nodules (2 to 150 mm in size, about 15% of the total sediment layer) from the finer material, and then discharge the finer sand and silt from another flexible pipe onto or near the seabed.

Boskalis proposes mining in 2x5 km blocks, with each block taking four months to complete. GPS and other underwater navigation systems enable accurate tracking of the mining path, giving significant operating flexibility.

From the outset CRP has focused on using the best scientific and engineering resources possible. In particular we have built a highly skilled technical team (including three scientists who collected and interpreted most of the data in the 1970s and 80s) and have spent $20 million-plus on scientific research to complement and update previous work. CRP is using information gathered on the voyages of the 1960s, 70s and 80s, along with six CRP-funded surveys in the past couple of years, including NIWA scientists’ analysis of the seabed and water column environment in our permit and surrounding area.

The principal focus has been to:

  • evaluate the likely environmental impact of the project

  • identify ways to minimise and monitor effects

  • gather geotechnical and environmental data to guide the engineering design of the mining system, and

  • develop a resource model for a mining plan.

The wealth of information now gathered has prompted CRP to expand its area of interest and, having gained a mining permit covering the richest phosphorite concentrations, we have applied for prospecting permits over areas west and east where there is more resource. A larger area may not significantly expand the area of seabed mined, but it will enable more flexibility in how the areas are mined and what areas of environmental value can be left as reserves.

An active stakeholder engagement process has been central to the project. By talking to any organisation or individual with a potential interest in the project (including environmental groups, industry, iwi and imi, media, etc) we’ve been able to identify and investigate their concerns and come back to stakeholders with more information and often with mitigation options.

We also have ongoing contact with government entities responsible for science, business, agriculture, conservation and environment, at both a departmental and political level.

The Chatham project will have local environmental effects on the seabed but it will also have significant environmental benefits. Some of these will arise from the ability to substitute the Chatham Rise product for phosphate now sourced from Morocco and other distant locations.

The benefits of using local phosphate include:

  • It is an organic New Zealand-origin product

  • It will reduce the carbon footprint by lowering transport costs

  • It has the lowest known concentration of cadmium of any phosphate rock

  • It reduces water pollution from run-off when used as a direct application fertiliser. Run-off is reduced because it releases slowly, requiring less frequent applications than conventional fertilisers, further reducing its carbon footprint

  • The rock is highly reactive, heightening its effectiveness as a fertiliser, and has strong liming qualities.

The project also has significant economic benefits, including making New Zealand $900 million richer, according to the New Zealand Institute of Economic Research.

It will have particular benefits for the Chatham Islands. We will be able to supply the islands with fertiliser at a much cheaper price; little fertiliser is applied on the islands because of prohibitive transport costs.

Federated Farmers representatives on the Chathams estimate fertiliser could increase farm production up to 10-fold and add as many as 350 new jobs. Given the islands’ current population is lower than 600, that increase in farm production could transform the local economy and make the cost of infrastructure such as power and transport more affordable.

Side benefits for the islands include employment opportunities on the mining vessel and using island resources for support services such as rescue, monitoring, etc. CRP has also committed to supporting local causes and providing scholarships as part of its desire to be a good corporate citizen.

Our mining area – which covers less than 1 per cent of the Chatham Rise – is not a fishing area.

The research predicts any seabed sediment effects will be confined to a few kilometres of our mining area, which is about 250 km from the Chatham Islands.

We will destroy organisms in our limited mining area, but they are widely distributed and we are working with marine biologists to identify reserves in our permit area to preserve representative communities.

The Deep Water Fishing Group is concerned about possible impacts of our activities on commercial fishing. The key environmental effect, apart from disturbing areas of seabed, will be the sediment plume from the return of the fine material to the sea floor.

The modelling of the impacts on the seabed and in the water column predicts there will be no material effect on commercial fish. Sediment of sufficient thickness to harm organisms on the sea floor (5 cm or more) is predicted to be restricted to the immediate mining area. Sediment more than 1 mm thick is predicted to extend no further than 8 km from the mining area.

Silt and clay concentrations so small they are not visible (1 mg per litre) could drift tens of kilometres in the water. The immediate mining area is the only location concentrations higher than 100 mg per litre are predicted to last for more than a day.

Scientists say these low levels of suspended sediment won’t affect organisms. The models predict the sediment won’t rise more than 50 m above the seabed – well below the most biologically productive part of the water column.

CRP’s business case assumes it will sell the rock phosphate to New Zealand and Asia-Pacific markets. Strong interest is being shown by at least eight countries as there are few sources of phosphate in this part of the world.

Boskalis’ mining plan is based on an 8-10 day mining cycle, with 50,000 tonnes of rock extracted in three days, 5-7 days for sailing to a yet-to-be-selected New Zealand port for unloading and the return to the mining site. The plan builds in generous allowances for maintenance and down time caused by inclement weather.

Having gained the mining permit last year, 2014’s focus is to raise enough capital ($6 million) to complete the marine consent process. Capital-raising is currently underway in London.

The marine consent process has a six-month prescribed timeframe. After CRP lodges its application and environmental impact assessment – hopefully in late March – interested parties can make submissions and be heard at public hearings.

The Environmental Protection Authority will manage the process, including appointing a panel of experts who base their decision on scientific evidence. The process ensures environmental considerations are balanced against economic benefits, and is also designed to avoid the delay tactics used by opponents of land-based mining projects under the Resource Management Act.

Assuming Chatham receives a favourable decision later this year, we could be mining by late 2016.

Chris Castle is Managing Director of Chatham Rock Phosphate

Dominion Post Article: CRP to List on the London AIM Market

To read the full article online - click here

27th Feb 2014

Dominion Post

DAVE BURGESS

A NUMBER of wealthy groups have expressed interest in investing in Wellington-based Chatham Rock Phosphate (CRP) when it lists on the London AIM market.

AIM is the secondary market of the London Stock Exchange for smaller growing companies.

CRP chief executive Chris Castle said because there was no associated public offering with the secondary listing it was expected to take between two to three months to complete.

‘‘I met about 15 different groups [on a recent visit to Britain]. They had already been vetted and they wanted to meet me and were interested in what we are doing.

‘‘There was a strong flavour that our stock needed to be listed on a more accessible market ... hence the decision to go for the AIM listing. We are not doing an IPO [initial public offering]. We are getting to a market place were people are happy to get out their chequebooks.’’

NZX-listed CRP holds a 20 year mining permit, issued last year, to vacuum the sea floor for phosphate nodules from an 820 square kilometre area of the Chatham Rise.

It has applied for new prospecting licences both east and west of its existing licence areas.

The company is finalising its environmental impact assessment for its Marine Consent application, which it needs from the Environment Protection Authority, before it can start operations.

Castle expects the application to be filed by the end of March, to be formally accepted by the authority in April, and all going well to have the licence no later than early November.

The AIM listing is part of a drive to raise $6 million to fund the consent application