- Release Date: 16/09/13 16:30
- Summary: S/HOLDER: CRP: Chatham Rock Phosphate Shareholder Update
- Price Sensitive: No
- Download Document 5.85KB
CRP 16/09/2013 14:30 S/HOLDER REL: 1430 HRS Chatham Rock Phosphate Limited S/HOLDER: CRP: Chatham Rock Phosphate Shareholder Update Shareholder Update SEPTEMBER 2013 There's been quite a bit happening under the radar since we last formally reported to you at the AGM in July so I thought it would be useful to provide a summary of what we've been up to. The permitting process You'll be aware we decided to withdraw our Marine Consent application at the 11th hour in July. This was in the light of the slower than expected progress of our Mining Permit. The board decided it was important that we receive this consent before we invested more significant time and resources into the Marine Consent process, which over a six-month time-frame, involves hearings and a large commitment in terms of money and people. Over the past month our primary focus has been on progressing the Mining Permit. We're working closely with New Zealand Petroleum and Resources to ensure their staff have all the information they need. Finance updates This week we advised the NZX we have raised another $900,000-plus from existing and new investors. This has gone some way to meeting the gap left after our IPO didn't raise the capital we need to take us through to the end of the consenting process. Some existing investors were disappointed we had failed to achieve a key milestone, (the Mining Permit that we expected to receive in June) and that also made it harder to attract new investors. The latest fundraising is in two tranches - the first half at 30c, with the second half at 35c closing two weeks after our mining permit is granted. I continue to talk to mainly international investors who are interested in investing in our project at its present stage. Review of the resource figures Part of the work to finalise the information required for the Mining Permit has involved reviewing how we've quantified our resource. This review work has been carried out in the main by two independent consulting firms. They re-analysed our historic data in the light of new information that we gathered during the 2011 and 2012 cruises, then applied a range of modern resource calculation tools. And by applying a different cut-off grade (justified by the much higher rock phosphate prices prevailing now compared with 1981) we have revised our indicative estimate of recoverable rock phosphate in our mining licence area to be larger than the 25 million tonne estimate that our application was originally based on. The preliminary outcome of the review work is an estimate of 32 to 35 million tonnes. These figures do not represent a proven (i.e. inferred, indicated or measured) resource, or take into account losses during mining, but are a positive reinforcement of our confidence that the resource is significantly larger than assumed in our business case. Updated Edison report Edison Investment Research updated their analysis of the company in a report issued in late August. It's a useful summary of our status. The full report can be found on our website through this link: http://www.rockphosphate.co.nz/news/2013/8/28/edison-report-22-august-2013 The AusIMM conference In the last week of August the Chatham team spoke at New Zealand's main mining industry forum in Nelson. AusIMM stands for Australasian Institute of Mining and Metalurgy and the conference was that of the New Zealand branch. The presentations covered our financing, how we defined the resource, how we're designing an environmentally sustainable extraction process, and what's involved in the environmental consenting process. The session, at which a team of four presented, was well attended and received some interesting questions. The links to all of the presentations, which are on our website, are provided below. http://www.rockphosphate.co.nz/news/2013/8/28/m3bb7g2lgkddxhmxsohpebr2e8sau5 http://www.rockphosphate.co.nz/news/2013/9/2/crpausimm-conference-2013 http://www.rockphosphate.co.nz/news/2013/8/29/system-design-for-sustainable-p hosphate-mining-operations http://www.rockphosphate.co.nz/news/2013/8/29/sslced4cpica9etz3jpqwtudzy561w Deep Water Group Opinion pieces written by me have been published in the New Zealand Herald and Dominion Post in recent weeks, in response to articles written by the Deep Water Group. The DWG is attempting to wage a campaign to discredit our project. If you missed them, here are the links to our responses: http://www.stuff.co.nz/dominion-post/comment/9133448/Seafloor-phosphate-minin g-less-damaging-than-trawling http://www.rockphosphate.co.nz/news/2013/8/20/chatham-news-story-in-nz-herald Their motivation remains unclear given our tiny extraction footprint and minimal environmental effects - especially when compared with the massive impact of bottom-trawling over vast swathes of the ocean floor in the EEZ. We remain open to a dialogue with the DWG that started three years ago and was, until a few months ago, very positive. We are completely confident our research and scientific evidence will clearly demonstrate to the Environmental Protection Authority that we can sustainably extract rock phosphate on the Chatham Rise without any material impacts on other activities, including fishing. Our Marine Consent application is to be heard by an expert panel of decision makers convened by the EPA. This panel will examine the scientific evidence provided by us and by those who may have a contrary view of our project. A decision will then be made in the context of the purpose of the EEZ Act which is to "promote the sustainable management of the natural resources of the EEZ and the Continental Shelf". Conjectural statements made in the media about the possible impact of our phosphate recovery operation that cannot subsequently be sustained by facts within the EPA hearing process are simply a sideshow and an irrelevancy. Chris Castle Managing Director End CA:00241155 For:CRP Type:S/HOLDER Time:2013-09-16 14:30:16
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