Seabed mine developer Chatham Rock Phosphate proposes to list
on the London stock exchange's alternative AIM board at the
end of the year, once it gets its marine consent from the
Environmental Protection Authority (EPA).
Chatham proposes to suction-dredge loose phosphate nodules
from the seafloor on the Chatham Rise, in about 400m of
water, and has spent more than $25 million in research,
development and applications during the past four years.
Chatham's managing director Chris Castle is in London and
said the company had been investigating a capital raising and
listing during recent months.
''The directors have decided it is preferable, in terms of
restricting dilution and enhancing shareholder value, to have
an initial public offering in London after we receive the
marine consent,'' he said in a statement yesterday.
About 240 submissions were made to the EPA on Chatham's
proposal, which will be subject to public meetings in
Wellington and the Chatham Islands, before a decision is
made, possibly by November.
Mr Castle said sufficient funds were being raised to meet the
company's needs for the next few months.
Existing shareholders would have the opportunity to
participate at the same price per share as the private
placements being made, he said.