Listen to this articleAs you will be aware Chatham is making a limited offer private placement of 10 million units in order to raise the working capital we need to achieve granted mining permits at Korella North (our immediate key focus) and at Makatea in French Polynesia.
Subsequent cash flows from these two projects will then be available to enable the payment of dividends, develop our much larger Korella South mine, and to fully permit the Chatham Rise project in New Zealand where the recent change of Government is clearly a very positive development for advancing minerals projects.
We expect that this change of Government in NZ will result in international investors, many of whom are existing shareholders, to seriously consider further investment in our Company.
Adverse share market conditions, particularly for junior resource companies listed in Canada and Australia, have impacted our share price in recent months and hence the need to price this offer at CAD 7 cents (AUD 8 cents and NZD 8.6 cents) It’s ironic that we are significantly more advanced towards a fully permitted status for our lead projects than we were in July this year when we closed our last financing at CAD 13 cents (AUD 14 cents and NZD 15.4 cents).
While this could be viewed as a setback, we consider that this cheaper entry price is an opportunity that should not be missed and several of our directors will be investing again in this private placement. Underlining our confidence are the continuing high international rock phosphate prices prevailing, even for rock phosphate with high cadmium levels. All of Chatham’s rock phosphate identified resources and reserves (located in New Zealand, Australia and French Polynesia) command higher prices since they are extremely low in cadmium and are classified organic.
Last Week was a particularly Momentous Week
Last week we announced that the Mining Lease Application for the Korella North Mine had been lodged with and accepted by Queensland Department of Resources.
This lodgment and immediate acceptance of the Mining Lease Application was the icing on a cake for what was already a great week. That week we made significant progress in our three key projects that will enable Chatham to become a global organic, low cadmium phosphate miner and trader.
In our Makatea project in French Polynesia, the new Government has announced the Minister responsible for resources and mining and his supporting team. This provides immediate clarity on the process we can now follow to ensure the grant of the Mining Concession.
In New Zealand, our Chatham Rise Project has significantly improved prospects of securing both government support and international investor backing following the recent election. The new Government clearly understands the value of resource development, including undersea mining, to the New Zealand economy.
As already announced on multiple occasions Chatham Rise phosphate deposit contains the only domestic resource of direct application phosphate rock and is a resource of national significance which should enable the environmental permitting process to be fast tracked.
In Australia we have worked tirelessly to get our three Korella phosphate projects into operation. While Korella Central remains mired in court action, the push to get Korella North into production as soon as possible has taken this significant step in the lodging and acceptance of its Mining Lease Application.
Eligible shareholders and prospective investors who wish to participate in this placement which is proposed to close on 21 December should contact me immediately in order to obtain the subscription agreement.
Written by:
Chris Castle
Chief Executive Officer
Chatham Rock Phosphate Ltd
Cell: +64 (0) 21 558 185
Email: chris@widespread.co.nz
Web: www.rockphosphate.co.nz
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