Chatham Rock Phosphate Ltd. is proceeding with a non-brokered private placement of up to five million units at a price of seven cents per unit (8.6 New Zealand cents) (7.8 Australian cents) for gross proceeds of up to $350,000 (Canadian) ($430,000 (New Zeland) ($390,000 (Australian).
Terms of the issue
Each unit will consist of one common share in the capital of the company and one transferable share purchase warrant, transferable subject to applicable securities legislation. Each warrant will entitle the holder thereof to acquire one common share at a price of 20 cents per share at any time prior to the date that is twelve months 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 30 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 such news release.
The common shares and warrants issued pursuant to this proposed offering are subject to a hold period of four months plus one day after the closing date of the private placement as provided by securities legislation.
Finders’ fees may be payable in cash to arm’s-length parties in connection with the private placement as permitted under the policies of the TSX Venture Exchange. The private placement is subject to the acceptance by the TSX Venture Exchange and is expected to close on or before Feb. 28, 2025.
Disposition of funds
The private placement funds raised will be used for the following purposes:
Completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia with expected operating cash flows in 2026;
The first steps in a fast-track reapplication for a marine (environmental) consent on the Chatham Rise
general working capital.
- Completion of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia with expected operating cash flows in 2026;
- The first steps in a fast-track reapplication for a marine (environmental) consent on the Chatham Rise
general working capital.
These funds would be augmented by the proceeds of sale of the Korella North and Korella South Queensland-based phosphate projects and the subsequent associated royalties (see the company’s news release dated Jan. 20, 2025), however, there is no guarantee that the sale of the Korella projects will close.
