Chatham Rock Phosphate Ltd. has successfully raised further working capital to keep the company in good standing as it continues to pursue its dual key objectives of:
Securing a new cornerstone investor to finance the company’s environmental permit reapplication;
Working with the company’s proposed merger partner, Avenir Makatea, to fast-track the grant of its mining permit, presently expected to occur in the fourth quarter of 2021.
- Securing a new cornerstone investor to finance the company’s environmental permit reapplication;
- Working with the company’s proposed merger partner, Avenir Makatea, to fast-track the grant of its mining permit, presently expected to occur in the fourth quarter of 2021.
Based on the success of that recent financing (which was oversubscribed), the company is proceeding with a further non-brokered private placement of up to six million units at a price of 11 cents per unit for gross proceeds of up to $660,000, subject to regulatory approvals. Significantly, the company has again partnered with Stockhouse as part of this fundraising initiative, and the company expects that Stockhouse’s global reach will, as it did in respect of the company’s last private placement, materially assist Chatham Rock in reaching its target.
Each unit will consist of one common share in the capital of the company and one transferable share purchase warrant, subject to applicable securities legislation. Each warrant will entitle the holder thereof to acquire one common share at a price of 45 cents 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 per common share for a period of 20 consecutive trading days at any time after four months and one day following 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 common shares and warrants to be issued pursuant to this proposed offering will be subject to a hold period of four months and one day after the closing date 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-V. The private placement is subject to acceptance by the TSX-V and is expected to close on or before June 24, 2020.
