WELLINGTON, New Zealand,
Dec. 1, 2017 /CNW/ - Chatham Rock
Phosphate Limited (TSXV: "NZP" and NZAX: "CRP" or the "Company") is
pleased to announce that:
1) Our recent rights issue raised CAD$
487,000, with 28.2% of the issue being taken up by
directors, management and other insiders. Management is now the
largest shareholder group holding 12.3% of issued capital. And this
is the eighth time since 2010 that existing shareholders have
provided ongoing, sustained support to their Company in a series of
rights issues and share purchase plans. A total of 1,372,830 common
shares were issued pursuant to the rights issue.
2) CRP is now proceeding with a non-brokered private placement
of up to 3,000,000 units (the "Units") at a price of CAD$0.36 per Unit for gross proceeds of up to
CAD$1,080,000.
Each Unit will consist 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$0.50 per share at any time prior
to the date that is two years from the date of
issuance.
In the event that the common shares of the Company trade on the
TSX Venture Exchange at a closing price of greater than
CAD$0.60 per common share for a
period of 20 consecutive trading days at any time after four months
and one day after the closing date of the private placement, the
Company may accelerate the expiry date of the Warrants by giving
notice to the holders thereof by way of a news release and in such
case the Warrants will expire on the 30th day after the
date of dissemination of the news release.
The proceeds of this placement (together with the proceeds of
the rights issue) will be used to progress the re-application for
the environmental permit during the next year. The application is
expected to be substantially complete in 12 months'
time.
Finders' fees may be payable in cash to arm's length parties in
connection with this placement as permitted under the policies of
the TSX Venture Exchange. The private placement is subject to
the acceptance by the TSX Venture Exchange.
Neither the Exchange, its Regulation Service Provider (as
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