Chatham Rock Phosphate - CRP

[Whipmoney]

Moosie.... you seem to be a very self opinionated young man... arrogant comes to mind... I noted the way Simla put you in your place on the Bliss Thread...

This is a update... it is not all same old.. here is a company that could make a huge difference to our economy... and the best you can do is be derisory... and buy the way.. his name is Chris Castle... not just Castle...

Regards.

Moosie's actually one of the few people whose posts are worth reading. I can't say the same about your posts in this thread...

[easy money]

Some interest in CRP today....would not be surprised if ACC were making a move on this stock..

[easy money]

Up 2 cents today..getting ready for a run upwards.

[Dej]

Wow, they must be expecting substantial upside when that consent is issued! New shares will mean between 11.5M to 17.15M are added to the stock (dilution of ~9 to 13%). Hopefully the last needed to start mining!

CRP
04/06/2013 08:39
S/HOLDER

REL: 0839 HRS Chatham Rock Phosphate Limited

S/HOLDER: CRP: Chatham to Undertake Public Capital Raising

4 June 2013

Chatham to Undertake Public Capital Raising

The Board of Chatham Rock Phosphate has decided to proceed with a capital
raising offer to the public in New Zealand under a simplified disclosure
prospectus.

The offer will seek to raise $4 million with the ability to accept
oversubscriptions of a further $6 million. The offer will consist of new
ordinary shares at an issue price of $0.35 per share with one option attached
to every three shares issued. The options will have an exercise price of
$0.70 to receive one share and will be exercisable over a three month period
following the grant of a marine consent for Chatham Rock Phosphate's Chatham
Rise phosphorites project.

A draft application for the marine consent has already been filed with a
final application intended to be filed in approximately a month's time. The
marine consent, together with the mining licence (which is expected to be
granted shortly) represent the key regulatory approvals needed for the
project to proceed. Accordingly obtaining the marine consent is seen as a
considerable de-risking step for Chatham Rock Phosphate and appropriate for
triggering the option exercise period. Chatham Rock Phosphate will seek
quotation of the options on the NZAX market.

The purpose of the offer is to substantially fund Chatham Rock Phosphate
through to mining commencement, presently scheduled for 2015. To date Chatham
Rock Phosphate has principally been funded through a combination of private
placements with qualified investors and annual share purchase plan offers to
shareholders. This offer will be available to any member of the public in New
Zealand and its success would allow the management team to focus on achieving
operating milestones for the project rather than needing to focus on seeking
additional funding.

As recently announced, Edison Investment Research has assessed an un-risked
value per share for Chatham Rock Phosphate of $2.00. While risks remain in
the project, Chatham Rock Phosphate considers that the pricing of the offer
represents attractive potential upside for investors against this valuation.
The key will be Chatham Rock Phosphate maintaining project momentum over the
next 12 months which will de-risk the project further and keep it on target
for mining commencement in 2015.

The simplified disclosure prospectus for the offer is expected to be
registered shortly with the offer opening in the next fortnight and closing
in mid-July.

On behalf of the Board,

Chris Castle
Chief Executive Officer
Email: chris@crpl.co.nz
End CA:00236994 For:CRP Type:S/HOLDER Time:2013-06-04 08:39:33

Is the moose going to partake? 0.70 options is a bit forward..

[Xerof]

It's not an SPP, so there shouldn't be pressure on the SP from existing holders, and there is no downside for anyone holding the option.

not sure if a mining license would more than double the shareprice, but that appears to be what they think may happen.

goodo

[MAC]

I’m relatively new to CRP and seeking some advice;

As I understand this is the final capital raising for CRP prior to commencing operation in early to mid 2015. This would usually raise my interest as a sweet spot on the risk/reward curve as it may for others.

CRP have announced an intention to dual list on the TSX. A requirement for the TSX listing, as I understand, is that CRP must have 12 months forward working capital on their balance sheet. CRP state this as being $5M, hmmm, and they are seeking $4M to $10M during this present offering.

I understand from CRP that the TSX listing is “desirable to improve liquidity in the shares given that there are a number of phosphate and fertilizer companies listed in Canada. phosphate attracts significant research from Canadian broking firms and a significant percentage of Shares are owned by North American investors.”

After the present offering they should not have further need for capital raising, and, in terms of further growth they cannot immediately easily expand much beyond 15 years resource, as I understand, they are pretty much surrounded by L&M prospecting licences.

What are the reasons CRP may wish to list on the TSX;

1. One of the major investors is considering a sell down or out ?
2. Facilitation of a possible takeover ?
3. I'm reading too much into this ?

Mac

[Merc]

Wikipedia says about the Chatham Rise:

"The Chatham Rise is an area of ocean floor to the east of New Zealand, forming part of the Zealandia continent. It stretches for some 1,000 kilometres (620 mi) from near the South Island in the west, to the Chatham Islands in the east. It is New Zealand's most productive and important fishing ground."

A novice's question here:

- How certain are they to receive a license to mine in this area?

[easy money]

Well said Moose...

[MAC]

I agree, there is every probability that CRP may achieve a mining consent, a prospect offering economic benefits will assist the politics, and unlike onshore mining there are fewer NIMBY's out there on the ocean.

There is a chance though that being the first application made it may attract those opposed to the new process in force and an appeal could delay the granting of a consent considerably, even a year or two.

All risks to be fairly cognisant of and considered.

[MAC]

It seems that some opposition is forming and perhaps some economic competition from fisheries also.

http://www.stuff.co.nz/nelson-mail/n...ining-proposal

It is just unfortunate that CRP’s cashflow would not permit a capital raising to take place immediately after gaining a mining consent.

CRP’s analyst, Edison, provide a de-risked valuation of NZ$2.00/share, the present share price is $0.35 giving us a risk reward ratio of 570%, and IMHO it needs to be this high right now to consider investing.

Consenting is more a political process than a scientific evaluation, I’m still envisaging that the EPA will ultimately back CRP in support of the new process and legislation, and the economic benefits to NZ will assist parliamentary politics, but if a stalemate does occur an appeal process could delay the venture significantly.

I’m still willing to dip my toes in but with a small portfolio percentage.

DISC: Applying but well diversified