WELLINGTON, New Zealand,
Jan. 10, 2018 /CNW/ - Chatham Rock
Phosphate (NZ: CRP, TSX.V: NZP) ("CRP" or "the Company") provides a
further quarterly shareholder briefing. The fourth quarter of 2017
was particularly active and it's timely to provide another informal
update on recent events and also outline our plans for 2018.
Events of note include:
International Meetings
In late September Chatham Rock Phosphate delivered two keynote
addresses at the Underwater Mining Conference hosted by the
International Marine Minerals Society, this year held in
Berlin.
Chatham CEO Chris Castle updated
the scientists, marine miners, sector investors and other industry
players attending the conference from 25 countries on the company's
present status and forward plans.
His address, the central theme of this being that Chatham remains on track to re-submit a marine
consent application, was warmly received.
His address was followed by a well-received presentation from
Renee Grogan, Chatham's recently appointed project manager
and leader of its proposed marine consent reapplication. Renee is
also a director of the World Oceans Council. Her central
theme was the necessity for inter-industry collaboration between
those already working in the world oceans and proposed new
entrants.
It is the seventh year Chatham
- one of the most advanced marine mining projects in the world -
has updated the marine mining industry on progress. Chatham has held a granted mining licence
since December 2013 and plans to
apply for a marine consent in the fourth quarter of 2018.
Attendance at the conference was followed by meetings in
The Netherlands with Boskalis and
Deltares. Both have worked with Chatham for several years on developing the
phosphate extraction technology, as well as measuring and targeting
the minimisation of possible environmental impacts.
Rare Earths Research
Chatham also confirmed it is
about to commission a research project aimed at separating valuable
by-products (including rare earths) within the sandy seafloor
matrix that contains the rock phosphate deposit. As our phosphate
recovery process is already bringing these sands up to the vessel
there is no mining cost involved, merely the costs of separating
these by-products from the sand before it is returned to the
sea-floor. Successful recovery of even a small proportion of these
by-products could add significantly to our future revenue and
profitability and also establish a strategic ocean-floor based
asset for New Zealand.
Change of Government and Environmental Messaging
Following the change of government in New Zealand Chatham provided briefing notes to a number of
incoming Ministers. Individual briefing notes were sent to
the 10 most relevant Ministers, including the Prime Minister and
Deputy Prime Minister, as well as the Ministers of Energy and
Resources, Environment, Economic Development, Agriculture,
Fisheries, Forestry, Export Development, Conservation and Regional
Development.
The notes provided a succinct summary of our project and
particularly its net environmental benefits.
In parallel with those submissions to government Ministers
Chatham released a sequence of announcements to the market and to
shareholders further elaborating the environmental pluses
associated with our project. These benefits are outlined further in
the latter section of this release.
Independent Investment Reports & Media Coverage
On 18 October Australia-based Independent Investment Research
released an independent research report on Chatham Rock Phosphate
to its extensive international client list. The report was
subsequently published on the Bloomberg, Reuters, FactSet, Capital
IQ and Research Tree (UK) platforms.
The full report is available from me on request, and is also
accessible at www.rockphosphate.co.nz.
Chatham also featured in
Resource World, a Vancouver based
publication that is widely distributed in international mining and
investment circles.
TV coverage included a 15 second clip about Chatham Rock
Phosphate on BNN (Canada)
beginning November 6 and running
until December 3.
This week Canada-based
Fundamental Research Corp (FRC) will complete an independent report
on Chatham Rock Phosphate. Further details will be released in due
course but it is likely that the report will only be available
directly from FRC.
Successful rights issue
Chatham's rights issue offer to
all existing shareholders closed on 24 November 2017. The
issue raised approximately NZ$549,000 in new capital and was the
eighth such issue supported by our loyal supporters since 2010.
Chatham management were also major
participants in the issue.
Private Placements
In December we launched a private placement for up to 4,000,000
units (the "Units") at a price of CAD
0.30 per Unit for gross proceeds of up to CAD$ 1,200,000.
Each Unit consists of one common share in the capital of the
Company and one-half of one non-transferrable share purchase
warrant ("Warrant"). Each whole Warrant will entitle the
holder thereof to acquire one common share at a price of
CAD$0.45 per share at any time prior
to the date that is two years from the date of issuance.
The issue will close on January
19. Please contact Chris
Castle if you wish to participate.
Moving away from being a "one trick" pony
We also made significant progress towards securing marine
phosphate opportunities offshore. This initiative will involve
minimal upfront costs but is aimed at securing strategic alliances
linked to marine phosphate assets in other countries. We consider
this initiative, which leverages our in-house expertise, to be very
much in the interests of our shareholders. As and when they arise,
future commitments will be structured in a manner where they will
not divert funding from our principal objective, that of gaining
the Chatham Rise Marine Consent on our second try.
What's coming up?
The private placement aspect of our financing programme is being
undertaken in stages, partially to reduce shareholder dilution as
much as possible given the present historically low market value of
your company.
As such this will likely affect the reapplication timetable but
not significantly. We still anticipate completing the reapplication
process and hearing by early 2020 assuming that the present funding
target is reached by the end of January.
A reminder about our environmental and other benefits
You can be our advocates whenever our project is raised in
conversation. To remind you why the Chatham Rise project
remains hugely important for New
Zealand, here are the key reasons:
- Our rock is a proven reactive phosphate rock. Using it results
in much less run-off into waterways and an improved soil profile
compared with the effects of manufactured fertilisers.
- As such it is an organic fertiliser
- It also contains ultra-low levels of cadmium, a cancer-causing
heavy metal with much greater concentrations in other rock
phosphate deposits
- Being locally sourced and needing to be applied less frequently
results in much lower carbon emissions (in effect increasing the NZ
EV fleet from 5,000 to 24,000 vehicles)
- The environmental footprint of seabed extraction is
demonstrably smaller than the impact of onshore phosphate on local
communities overseas
- The rock is within one day's sailing distance and supply is far
more secure than phosphate rock coming from unstable regions on the
other side of the world.
- The project economics are attractive and Chatham will pay significant royalties and
income taxes
- The project will generate new jobs in environmental monitoring,
on the mining ship, in the home port and in the science and
agricultural sectors
The following graphic outlines these and other key benefits. See
also our online interactive infographic at
http://www.rockphosphate.co.nz/projectinfographic
Regards
Chris Castle, Managing
Director
chris@crpl.co.nz or +64 21 55 81
85
skype: phosphateking
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that term is defined under the policies of the Exchange), or New
Zealand Exchange Limited has in any way passed upon the merits of
the Transaction and associated transactions, and has neither
approved nor disapproved of the contents of this press
release.
SOURCE Chatham Rock Phosphate