Key points
- Chatham Rock Phosphate is offering up to 4.8 million units at 25 cents each for gross proceeds of up to $1.2-million.
- Each unit consists of one common share and one-half of a warrant exercisable at 45 cents per share for two years.
- The company may accelerate warrant expiry if its shares close above 60 cents for 20 consecutive days starting four months and one day after closing.
- Proceeds will fund the reapplication for an environmental permit over the next year, subject to TSX Venture Exchange acceptance.
Chatham Rock Phosphate Ltd. is proceeding with a non-brokered private placement of up to 4.8 million units at a price of 25 cents per unit for gross proceeds of up to $1.2-million.
Each unit will consist of one common share in the capital of the company and one-half of one non-transferable share purchase warrant. Each whole warrant will entitle the holder thereof to acquire one common share at a price of 45 cents per share at any time prior to the date that is two years from the date of issuance.
In the event that the common shares of the company trade on the TSX Venture Exchange at a closing price of greater than 60 cents per common share for a period of 20 consecutive trading days at any time after four months and one day after the closing date of the private placement, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof by way of a news release and in such case the warrants will expire on the 30th day after the date of dissemination of the news release.
The proceeds of this placement will be used to progress the reapplication for the environmental permit during the next year. The application is expected to be substantially complete after 12 months after this financing closes fully subscribed.
Finders’ fees may be payable in cash to arm’s-length parties in connection with this placement as permitted under the policies of the TSX Venture Exchange. The private placement is subject to the acceptance by the TSX Venture Exchange.
