On Jan. 20, 2025,
Chatham Rock Phosphate Ltd. agreed, in principle, to sell to an arm’s-length Australian entity the four mining and exploration leases in respect of its Korella North and Korella South properties currently held by its 100-per-cent-owned subsidiary, Avenir Makatea Pty Ltd. (AML).
The leases to be sold are ML100379, EPM 28589 and EPM 28882 in respect of Korella North, and EPM 28178 in respect of Korella South.
The sale price included a cash payment of $4.1-million (Australian) ($3.65-million (Canadian), $4.5-million (New Zealand)) on transfer of the leases to the acquiring company and a royalty to be paid to AML at a rate of $10 (Australian) per tonne for the first 190,000 tonnes of production (total $6-million (Australian), $5.34-million (Canadian), $6.6-million (New Zealand)). A further royalty of $1 (Australian) will be paid per tonne to AML on all production commencing after the completion of the first 190,000 tonnes up until March 31, 2040.
Chatham Rock also advised then that the transactions are conditional on a successful outcome in respect of a due diligence process to be undertaken by the proposed purchaser which then was currently under way and which was expected be completed on or before March 31, 2025, as well as the successful negotiation of a definitive purchase and sale contract, and TSX Venture Exchange approval, if applicable.
Chatham Rock now advises that the due diligence process has been extended to June 30, 2025.
