Wow, they must be expecting substantial upside when that consent is issued! New shares will mean between 11.5M to 17.15M are added to the stock (dilution of ~9 to 13%). Hopefully the last needed to start mining!
CRP
04/06/2013 08:39
S/HOLDER
REL: 0839 HRS Chatham Rock Phosphate Limited
S/HOLDER: CRP: Chatham to Undertake Public Capital Raising
4 June 2013
Chatham to Undertake Public Capital Raising
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
End CA:00236994 For:CRP Type:S/HOLDER Time:2013-06-04 08:39:33