Chatham Rock Phosphate Limited: Allotment of Shares
Chatham Rock Phosphate Limited’s (NZX: CRP) renounceable rights offer (Offer) closed on Wednesday 6 May 2015.
CRP has issued 102,205,156 ordinary shares (Shares) existing shareholders at an issue price of $0.006 per Share, in accordance with the terms of the Offer.
The Offer raised approximately $613,000, which will be used to fund CRP’s continued operations and for a potential restructuring transaction later this year (as previously disclosed in respect of the Offer). CRP is in discussions with a number of qualified investors with a view to placing shortfall from this Offer.
The issue was particularly well supported by New Zealand based shareholders, but the almost universal lack of support from our major overseas shareholders is concerning both to CRP and a very clear indication that many international investors no longer consider the resources sector in NZ a viable investment destination. The damage caused by the EPA’s unexpected decision to decline our Marine Consent application has much wider sovereign risk related consequences than just its impact on CRP.
Additionally, CRP advises that it has issued 2,812,500 ordinary shares in aggregate to three contractors of the Company (CRP-OCS Consulting Limited, Robin Falconer Associates Limited and LJ Sanders Consulting Limited) in accordance with their respective contracts for services and at an issue price of $0.016 (Payment Shares). These Payment Shares represent partial payment for services and the issue price reflects the 20 day volume weighted average price of a share in CRP on the NZAX market to 31 March 2015.