CRP
05/03/2015 14:55
GENERAL
PRICE SENSITIVE
REL: 1455 HRS Chatham Rock Phosphate Limited
GENERAL: CRP: CRP gives guidance on future strategy
Media Release
5 March 2015
CRP gives further guidance on future strategy
Chatham Rock Phosphate (NZX:CRP) has continued to develop its future plans
following the refusal of its Marine Consent application.
As previously announced, CRP has no intention of abandoning its Chatham Rise
phosphate project and is continuing to develop strategies for progressing the
project. Of critical importance to this is preserving its experienced and
highly specialised executive team and maintaining the support of its key
partners. CRP is pleased to advise of strong progress on both counts.
It is increasingly likely that CRP will pursue a re-submission of its Marine
Consent application. However before it makes a final decision to do so CRP
intends to continue to work with the Environmental Protection Authority to
seek clarity on the interpretation of the EEZ legislation and the EPA's
policies and procedures for managing the consent process. CRP is also
contributing where possible to the discussions about changes to the EEZ
legislation and will incorporate any changes in our plans.
It is encouraging that the Government is investigating changes given the
procedural and legal concerns with the process that CRP has previously
detailed.
Executive Team
The core executive team at CRP consists of:
- Chris Castle - CEO
- Robin Falconer - Principal Scientist
- Ray Wood - Chief Operating Officer
- Linda Sanders - Corporate and Affairs and Stakeholder Communications.
- Najib Moutia - Vice President - Sales and marketing
This team is supported by non-executive directors Robert Goodden and Jill
Hatchwell.
The Board and Executive team have each confirmed their commitment to
supporting CRP and progressing the project over the next 12 months.
In so doing they have each agreed to significant reductions in remuneration
to reduce overheads for CRP. They may each potentially receive remuneration
at a later date through CRP shares (priced at VWAP) as compensation. However
any such issue of shares would be subject to shareholder approval at a later
time.
Capital Requirements
Considerable work is going into reducing overheads in CRP, working through
cash requirements for the next 12 months and settling final costs associated
with the Marine Consent process. The purpose of this work has been to develop
a 12 month budget for keeping the project moving forward (including provision
for a small amount of scientific and technical work), continuing work towards
a re-submission of the Marine Consent application and increasing CRP's focus
on its Namibian permit applications. This capital requirement has been
assessed at $1.25 million.
CRP intends to conduct either a rights issue or share purchase plan offer to
shareholders in the near future as a first step towards funding this capital
requirement. Given the prevailing market price of shares CRP is conscious
that the offer will be highly dilutive and therefore will ensure shareholders
have first priority to invest. Any shortfall from such offer will then look
to be placed to non-retail investors.
Shareholders are encouraged to contact Chris Castle should they have views on
how the capital raising should be conducted.
Business Strategy
CRP is also using the current time to assess its overall business strategy.
One option is for CRP to increase its focus on its Namibia permit
applications in the short term to help diversify CRP's risk from primarily
focusing on a single project.
Because of the significant expertise that CRP has developed through the
Chatham Rise project, it is also being approached with new offshore mining
opportunities and other onshore and offshore phosphate mining opportunities.
CRP intends to continue to explore these opportunities and potentially
further diversify its activities.
Chris Castle +64 21 55 81 85 or [email protected]
End CA:00261510 For:CRP Type:GENERAL Time:2015-03-05 14:55:12
