Phosphate miner CRP adds $512k to kitty in capital-raising

Tuesday 7th October 2014

Would-be seabed phosphate miner, Chatham Rock Phosphate, will put just over half a million dollars in the kitty after its latest round of capital-raising, which attracted support from smaller shareholders after its larger investors had stumped up earlier in the year.

Managing director Chris Castle, in a statement to the NZAX platform, said CRP has issued 4,269,842 ordinary shares and 4,269,842 listed options to existing shareholders at 12 cents a share, with one option granted per share subscribed for to raise a total of $512,000.

The capital-raising comes at the end of the second week of hearings on CRP's application for a marine consent under the new regime governing activity in the Exclusive Economic Zone. The hearings, until now held in Wellington, will shift to the Chatham Islands on Thursday and Friday this week.

The project is opposed by deepwater fishing interests and environmental lobbies concerned at the impact of the dredging operation on the marine environment and fish spawning areas.

"The board is pleased with this strong level of support, given that a number of CRP’s largest shareholders did not participate in the offer, following significant investments in CRP’s April 2014 rights offer and more recent participation in placement rounds to the value of $2.5 million," said Castle. The company was in discussions with "a number of qualified investors" with a view to placing shortfall from the offer.

BusinessDesk.co.nz

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