Chatham Rock Phosphate Ltd. has provided a clarification to its shareholders and stakeholders regarding its current 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, originally announced March 22, 2021.
Proceeds from this Placement are not required to complete the company’s proposed acquisition of Avenir Makatea Pty. Ltd., owner of the Makatea phosphate project, which was announced on Dec. 21, 2020, with the formal agreement announced April 28, 2021. The acquisition of Avenir is an all-stock transaction, which has been conditionally approved by the TSX Venture Exchange (see company news release dated May 11, 2021). Further, while the company expects to use proceeds from this placement to further various aspects of the Makatea project, no funds are required to complete any aspect of the acquisition of Avenir or to maintain the ownership of the Makatea project at this time. The proceeds of the placement are intended solely for the company’s general working capital and to progress a second application with the New Zealand Environmental Protection Authority for Marine Consent for the Chatham Rise project.
