'Strong response' to latest Chatham capital raising

The ongoing support of Chatham Rock Phosphate Limited (NZX:CRP.NZ - News) shareholders is underscored by the strong response to the company’s latest capital raising, Managing Director Chris Castle said today.

"I am delighted to advise our investors have committed a further $908,000 to our funds. This brings the total money raised over the past four years to $31.4 million. That reinforces the belief our investors continue to demonstrate in the financial merits of this project and its economic and environmental benefits for New Zealand."

CRP today allotted new ordinary shares (Shares) and new listed CRPOB options (Options) from the Shortfall under its Rights Offer dated Monday 8 September 2014. The Shares and Options have been allotted at the same price as under the Rights Offer, being $0.12 per Share (with one Option granted for every new Share allotted).

"We’re now within sight of the finish line in our four-year marathon of research and planning for this project. This last tranche of funding is being used to finance the Marine Consent hearing process that is now in its last few weeks of consideration."

Mr Castle said this tranche complements the funds raised in the recent rights issue. The offer compares attractively with recent share price trading at up to 23c, which reflected a positive response to profit guidance issued earlier this month that reinforced the robust financial basis of the project. The ensuring price weakness over recent days reflected normal market behaviour when these share placements were being negotiated at a discount to market.

"We don’t need to raise much more capital and we will seek to raise only the funds we really need to achieve the Marine Consent." Mr Castle said investors’ latest show of confidence demonstrated they assessed the project’s risk has significantly greater upside than downside.