Further to the press release on June 28 regarding the share offering to Chatham Rock Phosphate Ltd.’s existing shareholders, the company wishes to announce that its anticipated closing date has been extended to Aug. 9 from July 26 to accept additional subscriptions.
The form of this offering in New Zealand is a share purchase plan whereby eligible shareholders, regardless of the size of their existing shareholding, are offered the opportunity to apply for a minimum of 5,000 shares and up to 100,000 shares. The offer price per share is eight Canadian cents (10 New Zealand cents). Depending on how widespread the uptake is, shareholders may have the opportunity to apply for more than 100,000 shares.
Canadian resident shareholders who held shares of the company as at June 27, 2024, are eligible to participate in the offering under the Canadian existing shareholder exemption. Details of this exemption are contained in the company’s June 28 press release.
The company intends to use the net proceeds raised in the offering as follows:
Continuing the fast-tracking of the development of the Korella North mine, the latter currently anticipated to be in production in fourth quarter 2024;Completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia with expected operating cash flows in 2027;General working capital.
- Continuing the fast-tracking of the development of the Korella North mine, the latter currently anticipated to be in production in fourth quarter 2024;
- Completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia with expected operating cash flows in 2027;
- General working capital.
It is anticipated that operating cash flows from the Korella North mine will, during 2024 and 2025, provide working capital while also financing the development of its Korella South mine and the reapplication for a marine consent (environmental permit) for its Chatham Rise project.
Completion of the offering is subject to receipt of the approval of the TSX Venture Exchange. All securities issued pursuant to the offering in Canada will be subject to a four-month-and-one-day hold period from the date of issuance of the shares in accordance with applicable Canadian securities laws.
