Key points
- Chatham’s subsidiary Avenir Makatea Pty. Ltd. holds four Korella leases: ML100379, EPM 28589 and EPM 28882 (Korella North) and EPM 28178 (Korella South).
- The proposed sale price was A$4.1-million cash on transfer plus a royalty of A$10 per tonne on the first 190,000 tonnes of production.
- A further royalty of A$1 per tonne would apply to all production after the first 190,000 tonnes until March 31, 2040.
- On Feb. 24 the exclusive due diligence period was extended to June 30, 2025, after which Marshall Group moved to non-exclusive negotiations.
Chatham Rock Phosphate Ltd. had previously agreed to sell to an arm’s-length Australian entity (the Marshall Group) the four mining and exploration leases in respect of the company’s Korella North and South properties currently held by the company’s 100-per-cent-owned subsidiary Avenir Makatea Pty. Ltd.
The leases to be sold are ML100379, EPM 28589, 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, $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, $6.6-million (New Zealand)). A further royalty of $1 (Australian) would be paid per tonne to AML on all production commencing after the completion of the first 190,000 tonnes up until March 31, 2040.
The company also advised then that the transactions were 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.
On Feb. 24 the company advised that the exclusive due diligence process had been agreed to be extended to June 30, 2025.
Subsequently the Marshall Group has moved to a non-exclusive negotiation process as they sought to investigate complementary opportunities in the overall phosphate value chain.
Accordingly other parties who earlier expressed interest in the acquisition of the Korella leases have re-engaged.
Of recent times Chatham has also received unsolicited interest in its other phosphate projects in New Zealand and French Polynesia.
There continues to be interest in other phosphate projects. For example, on April 16, 2025, it was announced that Christmas Island-based PRL Group are in a final 45-day due diligence period for the acquisition of Centrex Ltd. and its Australia-based Ardmore phosphate mine.
Shareholders will be kept informed as matters progress.
