Chatham Rock Phosphate announces private placement offering for funding mining developments

Chatham Rock Phosphate Limited (CRP), listed on TSXV (NZP), NZX (CRP), and FSE (3GRE), has announced the launch of a non-brokered private placement. The placement aims to raise up to CAD 700,000 by offering up to 10,000,000 units at CAD 0.07 per unit. This strategic move is set to bolster Chatham Rock Phosphate’s mining projects and general working capital.

Investment Details and Opportunities

Each unit in this private placement consists of one common share in Chatham Rock Phosphate’s capital and a transferable share purchase warrant. These warrants empower the holder to acquire a common share at CAD $0.45 anytime within three years from the issuance date. This offer presents a promising opportunity for investors to contribute to Chatham Rock Phosphate’s expanding phosphate mining operations.

Chatham Rock Phosphate Growth and Development Milestones

Chatham Rock Phosphate has reported substantial progress and milestones in the past two years, gaining investor confidence. Key achievements include the lodging of a mining permit application at Korella North, the oversubscribed private placement in April 2022, and the commencement of rare earth extraction feasibility studies. These developments underscore Chatham Rock Phosphate’s commitment to advancing its mining projects, particularly the Korella North mine, anticipated to start production in Q3 2024.

Utilization of Funds

The funds raised from this placement are allocated for fast-tracking the Korella North mine’s development, completing the Avenir Makatea onshore phosphate project’s permitting process in French Polynesia, and general working capital. The Korella North mine is expected to generate operating cash flows in 2024 and 2025, contributing significantly to the development of Chatham Rock Phosphate’s other mining projects.

Terms and Conditions

The common shares and warrants issued in this private placement are subject to a four-month hold period, as per securities legislation. The offering, which is subject to acceptance by the TSX Venture Exchange, is anticipated to close by December 21, 2023. Finders’ fees may be applicable, and eligible investors are encouraged to participate in this promising venture.

Chatham Rock Phosphate’s latest private placement represents a vital step in its expansion and operational strategy, providing a lucrative investment opportunity in the growing phosphate mining sector.