Chatham Rock Phosphate Ltd. advised on June 28, 2024, that the submission window for subscriptions in its non-brokered share private placement had closed that day.
On the same day the company announced that a share purchase plan offer would be made to all the company’s shareholders in the jurisdictions where such an offering is lawfully permitted. This is primarily in New Zealand.
It is intended that the form of the offer in New Zealand be 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 cents (10 New Zealand cents).
Record date and timetable for New Zealand investors
New Zealand resident shareholders who hold shares of the company as at 5 p.m. on July 5, 2024, are eligible to participate in the share purchase plan offer. This differs from the previously announced record date of June 27, which is the record date applicable to existing Canadian shareholders because the offer is being made to them pursuant to different exemptions from the prospectus requirements under Canadian securities regulations.
The timetable for the share purchase plan is as shown in the attached table.
The company intends to use the net proceeds raised in the offering as follows:
Continuing the fast tracking the development of the Korella North mine, the latter presently anticipated to be in production in Q4 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 the development of the Korella North mine, the latter presently anticipated to be in production in Q4 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 our Korella South mine and the reapplication for a Marine Consent (environmental permit) for the company’s 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.
