Chatham Rock Phosphate Ltd. has closed a non-brokered private placement of 3,878,441 shares at a price of eight cents (10 New Zealand cents and nine Australian cents)) per share for gross proceeds of $310,275 ($387,844 (New Zealand) or $349,059 (Australian)).
In connection with the sale of the shares, the company paid a total of $1,920 in cash to an eligible finder for certain of the shares sold.
All securities issued pursuant to the private placement are subject to a hold period and may not be traded until Sept. 11, 2024.
Use of funds
The funds raised will be used for the following purposes:
Fast tracking the mine development at Korella North in Queensland;
Continuation of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia;
General working capital.
- Fast tracking the mine development at Korella North in Queensland;
- Continuation of the permitting process for the Avenir Makatea onshore phosphate project in French Polynesia;
- General working capital.
In connection with the offering, a director of the company purchased a total of 55,000 shares. The subscription by an insider of the company constitutes a related party transaction for the purposes of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions, but the company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that the fair market value of the subscription, insofar as it involves an insider of the company, does not exceed 25 per cent of the market capitalization of the issuer, as determined in accordance with MI 61-101.
