Key points
- The placement is for up to four million units at 15 cents (17.7 NZ cents) per unit.
- Each unit includes one common share and one warrant exercisable at 45 cents (53 NZ cents) for up to five years.
- Gross proceeds of up to $600,000 will finance working capital to progress the environmental permit reapplication.
- The offering is subject to TSX Venture Exchange acceptance and is expected to close on or before Dec. 20, 2019.
Chatham Rock Phosphate Ltd. is proceeding with a non-brokered private placement of up to four million units at a price of 15 cents per unit (17.7 New Zealand cents) for gross proceeds of up to $600,000, subject to regulatory approvals.
Each unit will consist of one common share in the capital of the company and one transferable share purchase warrant, transferable subject to applicable securities legislation. Each warrant will entitle the holder thereof to acquire one common share at a price of 45 cents (53 N.Z. cents) per share at any time prior to the date that is five 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 (71 N.Z. 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 such news release.
The proceeds of this placement will be used to finance working capital necessary to progress the reapplication for the environmental permit during the next year.
The common shares and warrants issued pursuant to this proposed offering are subject to a hold period of four months plus one day after the closing dates of the offering as provided by securities legislation.
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 and is expected to close on or before Dec. 20, 2019.
