Seabed mine developer Chatham Rock Phosphate is seeking a
private placement of up to $6 million from international
investors, having appointed resource specialist London-based
corporate financiers Wimmer Financial as advisers.
Chatham Rock is proposing to mine seafloor phosphate using a
suction dredge operation on the Chatham Rise, targeting about
1.5 million tonnes a year in depths of about 400m.
Mining the phosphate will be the responsibility of 18.7%
shareholder Boskalis, while Chatham becomes a shore-based
Chatham chief executive Chris Castle said the offering, for
qualified investors, was likely to be the final
capital-raising required before Chatham is fully permitted.
Earlier this month Chatham Rock got its long-awaited 20-year
mining permit from the Government's permitting agency, New
Zealand Petroleum and Minerals, for extracting sea-floor
phosphate for fertiliser. It next requires a separate marine
consent permit from the Environmental Protection Authority,
which Chatham will apply for early next year.
''As our project is well advanced in all other respects, we
see the granting of the second permit we require - the
environmental or marine consent - as a game-changer,'' Mr
Castle said in a statement.
Chatham has so far raised about $24.5 million for the project
during the past three years, and a capital-raising in June
raised just $1.5 million of $4 million to $10 million being
Mr Castle said Chatham is seeking $6 million to fund the
marine consent application and corporate costs through to the
third quarter of 2014, when the marine consent is expected to
be granted. Chatham recently applied for new prospecting
licences, east and west of its existing Chatham Rise licence
areas, which Mr Castle said ''could significantly increase
the scope of resources''.
Wimmer Financial is a UK-based international corporate
advisory firm specialising in natural resources of mining,
oil and gas, alternative energy and real estate, with clients
around the world.