Key points
- Chatham Rock Phosphate closed a non-brokered private placement of 12,927,960 units at 17 cents per unit for gross proceeds of $2,197,753.20.
- The TSX Venture Exchange approved enlarging the offering from a planned 10 million units after demand from investors in New Zealand, Germany, the United States and Canada.
- Each unit comprises one common share and one warrant exercisable at 45 cents per share until three years from the closing date, with early expiry possible if shares trade above 60 cents for 20 consecutive days.
- Proceeds will fund permitting of the Avenir Makatea phosphate project in French Polynesia, exploration at Korella South, and general working capital, with the securities held until Aug. 9, 2022.
Further to Chatham Rock Phosphate Ltd.’s news release dated March 9, 2022, it has closed its non-brokered private placement of 12,927,960 units at a price of 17 cents per unit for gross proceeds of $2,197,753.20.
The private placement was intended to be limited to 10 million units but given significant interest from investors in New Zealand, Germany, United States and Canada, CRP requested (and was granted) approval by the TSX Venture Exchange to enlarge the issue to accommodate the demand.
Each unit consists of one common share in the capital of the company and one transferable share purchase warrant.
Each whole warrant entitles 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 three 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.
All securities issued pursuant to the private placement are subject to a hold period and may not be traded until Aug. 9, 2022.
Use of funds
The funds raised will be used for the following purposes:
Completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia;
Exploration and resource definition for both phosphate and rare earths at Korella South;General working capital.
- Completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia;
- Exploration and resource definition for both phosphate and rare earths at Korella South;
- General working capital.
