The Chatham Rock Phosphate Managing Director Chris Castle recently made a repeat visit to London to meet UK based potential investors. The visit proved to be successful.
Meetings were held with a number of investment groups that identified with the project and who indicated their interest in investing by means of private placement, subject to Chatham Rock Phosphate establishing a secondary listing on the London AIM market.
Accordingly the CRP board has agreed to proceed with the AIM listing process, which is expected only two to three months to complete.
“In order to maintain our existing momentum, including filing our marine consent application (EIA) in the next few weeks, a decision has also been made to make a very attractively priced rights issue to existing shareholders,” CRP announced.
Details of this offer will be announced to shareholders on 14 March and the rights will be both renounceable and, subject to NZX approval, tradeable on the NZAX market. Shareholders will also be entitled to apply for shortfall from the offer in addition to their entitlement. It is also intended to establish a panel of underwriters in order to ensure that the issue is fully subscribed.
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.
The company is currently finalising its Environmental Impact Assessment for its Marine Consent application.
Press Release, February 26, 2014