Further to the news release concerning the acquisition dated Oct. 14, 2021, the Australian Foreign Investment Review Board (FIRB) has approved the acquisition by Chatham Rock Phosphate Ltd.’s wholly owned subsidiary Korella Mining Pty. Ltd. of the Korella mining tenement ML90209.
FIRB approval, a condition precedent of the acquisition, was required because the company is predominantly owned by shareholders not domiciled in Australia.
This paves the way forward to a speedy conclusion of the acquisition of the Korella mine from Australia Venus Resources and to the required TSX Venture Exchange approval of the $2-million (Australian) share issue relating to the transaction.
In anticipation of the FIRB approval and the completion of the acquisition, Chatham Rock’s executive director Colin Randall and recently appointed field service manager Maurice March have already established a base in Cloncurry, the nearest town. The company has already made significant progress toward the joint aims of expediting the immediate sale of an already mined stockpile, future transport arrangements and commencing mining operations from the existing open pit.
During the last two months, it has identified a preferred site for the grinding, bagging and dispatch of Korella rock phosphate. It has also commenced negotiations with mining contractors and transport and processing plant providers, and has been actively involved with key local stakeholders, including the landowner and the local government authorities.
On the marketing front, it has established the Korella phosphate rock specification, together with a pricing schedule for rock delivered ex-works at Cloncurry. It has identified a very wide range of potential customers and has been contacting them.
Subject to access to the mine site following the acquisition and arrangements for crushing and bagging in Cloncurry, the first sales of Korella phosphate are now expected in July.
The start of cash generation from phosphate sales will mark a transformative milestone for the company.
