Key points
- 96 shareholders subscribed for 3,313,721 shares at eight cents (10 New Zealand shares) per share.
- The offering raised gross proceeds of $265,097.68 (NZ$331,372.10).
- Shares are subject to a four-month-and-a-day hold in Canada and cannot trade on the TSX Venture Exchange until Dec. 17, 2024.
- Proceeds will fund the Korella North mine, permitting for the Avenir Makatea project in French Polynesia, and general working capital.
CHATHAM ADVISES CLOSURE OF SHARE OFFER TO EXISTING SHAREHOLDERS
Chatham Rock Phosphate Ltd. has closed its previously announced share purchase plan offering made to New Zealand residents. The offering closed with 96 shareholders subscribing for an aggregate of 3,313,721 shares at eight cents (10 New Zealand shares) per share for gross proceeds of $265,097.68 ($331,372.10 (New Zealand)).
All securities issued pursuant to the private placement are subject to a hold period in Canada of four months and a day and may not be traded through the facilities of the TSX Venture Exchange until Dec. 17, 2024.
The company intends to use the proceeds raised in the offering as follows:
Continuing 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 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.
The subscriptions to the offering by two insiders of the issuer are related party transactions for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, but the issuer 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 subscriptions, insofar as it involves the insiders of the issuer, does not exceed 25 per cent of the market capitalization of the issuer, as determined in accordance with MI 61-101.
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 the company’s Korella South mine and the reapplication for a marine consent (environmental permit) for the company’s Chatham Rise project.
