CRP Seeks New Capital to Fund Its Marine Consents Application (Australia)
On 6 December Chatham Rock Phosphate (CRP) was granted a mining permit by New Zealand authorities.
This resolved a major area of uncertainty and does much to put CRP back on track. However, timings have suffered, which has weighed on CRP’s funding position and investor sentiment. CRP is now seeking NZ$6m of new capital to fund its application for marine consents. It expects to lodge its applications late in Q1 CY14, with a decision required under law before the end of 2014.
Marine consents represent CRP’s final and most critical approval milestone, after which a final investment decision can be contemplated.
2014 to be a defining year
The mining permit capped a mixed 2013 for CRP. H1 CY13 was marked by strong positive momentum, while H2 saw progress slow materially. The granting of its mining permit does much to put CRP back on track leading into what will be a defining 2014.
The participation of CRP’s planned contract mining partners, Royal Boskalis, is fundamental to CRP’s execution plan. It is Boskalis, not CRP, that will be spending the c US$300m required to fund the project’s operating infrastructure.
“While we understand that Boskalis remains committed, its own confidence is likely to have been affected by the delays of H2 CY13. Positive outcomes from discussions planned over the next few weeks will be important towards reassuring CRP investors of Boskalis’s commitment,” they announced.
Press Release, January 17, 2014