WELLINGTON, New Zealand,
Feb. 15, 2019 /CNW/ - Chatham
Rock Phosphate Limited (TSXV: "NZP" and NZAX: "CRP"
or the "Company") announces that it intends to make
application to the TSX Venture Exchange to amend the terms of
442,293 share purchase warrants issued in 2017 (the "2017
Warrants"), 1,172,885 warrants issued in June 2018 (the "June
2018 Warrants") and 381,780 warrants issued in
August 2018 (the "August 2018 Warrants"). The purpose of
the amendments is to extend the expiry date of the previously
issued warrants to that date which is five years from the
respective dates of issuance of the warrants.
In addition, the Company announces that the term of the warrants
to be issued pursuant to the private placement announced on
January 30, 2019 will be amended from
two years to five years from the closing date of the private
placement. All other terms of the private placement remain
unaltered.
The warrant terms are proposed to be changed in order to better
ensure that they can be exercised after the achievement of key
future milestones including the grant of the environmental permit
and the commencement of dredging operations.
2017 Warrants
Pursuant to a private placement completed by the Company in June
of 2017, the Company issued the 2017 Warrants which are exercisable
at a price of $1.00 per common share
and expire on June 27, 2019.
The 2017 Warrants also contain a forced conversion provision
entitling the Company to advance the expiry date in the event that
closing market price for the Company's common shares on the TSX
Venture Exchange is greater than $1.20 per share for a period of twenty (20)
consecutive trading dates (the "Forced Conversion Trigger
Price"). None of the 2017 Warrants have to date been
exercised.
The Company proposes to reduce the exercise price of the 2017
Warrants from $1.00 per common share
to $0.45 per share and to extend the
expiry date from June 27, 2019 to
June 27, 2022, being five years from
the date of issuance of the 2017 Warrants. The Company also
proposes to reduce the Forced Conversion Trigger Price from
$1.20 per share to $0.60 to make it consistent with the Forced
Conversion Trigger Price in the June
2018 Warrants, the August 2018
Warrants and the warrants to be issued in connection with the
current price placement being undertaken by the Company.
June 2018 Warrants
Pursuant to a private placement completed by the Company in June
of 2018, the Company issued the 2018 Warrants which are exercisable
at a price of $0.45 per common share
and expire on June 13, 2020.
The Company proposes to extend the expiry date of the June 2018 Warrants from June 13, 2020 to June
13 2023, being five years from the date of issuance of the
June 2018 Warrants. None of the
June 2018 Warrants have to date been
exercised.
August 2018 Warrants
Pursuant to a private placement completed by the Company in
August of 2018, the Company issued the August 2018 Warrants which are exercisable at a
price of $0.45 per common share and
expire on June 13, 2020. The
Company proposes to extend the expiry date of the June 2018 Warrants from June 13, 2020 to August
24, 2023, being five years from the date of issuance of the
August 2018 Warrants. None of
the August 2018 Warrants have to date
been exercised.
The proposed amendments to the warrants as summarized above are
subject to the acceptance of the TSX Venture Exchange.
About Chatham Rock Phosphate
Chatham Rock Phosphate is the custodian of New Zealand's only material resource of
ultra-low cadmium, environmentally friendly pastoral phosphate
fertiliser. Our key role is connecting the resource with
those who need it.
Using this phosphate will support sustainable farming practices,
including healthier soil profiles and reduced accumulation of the
heavy metal cadmium, reducing carbon emissions and dramatically
lowering runoff to waterways and shrinking fertiliser needs over
time.
The resource represents one of New
Zealand's most valuable mineral assets and is of huge
strategic significance because phosphate is essential to maintain
New Zealand's high agricultural
productivity.
New Zealand's current access to
phosphate is vulnerable to economic and political events in the six
countries controlling 98% of the world's phosphate reserves, with
85% of the total in the Western Saharan state of Morocco.
Chatham takes very seriously
the responsibility vested in it through its granted mining permit
to use the world's best knowledge and technology to safely extract
this resource to help sustainably feed the world.
Our initial environmental consenting process independently
established extraction would have no significant impact on fishing
yields or profitability, marine mammals or seabirds.
Neither the Exchange, its Regulation Service Provider (as
that term is defined under the policies of the Exchange), or NZX
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