Allotment of Shares and Options

18 July 2013

Allotment of Shares and Options

Chatham Rock Phosphate’s Initial Public Offer of shares and options has raised $1.58 million.

The offer, under a simplified disclosure prospectus, closed last Friday and the company’s share registry processed late applications over the following few days. New shares and options under the offer were allotted today.

Chief executive Chris Castle said while it was disappointing not to reach the target of $4 million, the offer achieved a good result given that it was non-brokered.

“It has successfully increased the profile of Chatham, including among institutions and the farming and rural communities. We are delighted to welcome a further 120-plus new investors into Chatham Rock Phosphate.”

Mr Castle said he is continuing discussions with institutions and a number of professional investors both locally and overseas that have expressed interest in Chatham.

The capital raised will allow Chatham to work towards achieving further milestones and de-risking over the coming months, which would enable capital in future to be raised at higher prices. “That would mean Chatham could minimise dilution of existing shareholder interests.

"Chatham Rock Phosphate has now raised a total of $23.5 million of the estimated $30 million needed before production is expected to commence in 2015.

“Most of that funding has been sourced in the very difficult market conditions prevailing in the resources sector for the last 18 months.

"With respect to our Mining Licence application, processes related to the new Crown Minerals Act have proven to be a bit more complex than initially anticipated. Our application remains a priority and is being actively progressed by New Zealand Petroleum and Minerals.

“With an existing market capitalisation of $50.4 million we expect to be able to progressively raise the last $6.5 million as we require it.”

Full particulars of the allotment are set out below

Class of security:

Ordinary shares

ISIN:

NZWENE0003S0

Number issued:

4,502,817 ordinary shares

Issue price:

$0.35 per ordinary share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

3.32%

Purpose of the issue:

For working capital purposes

Authority for the issue:

Board resolutions

Date of issue:

18 July 2013

Total number of securities on issue following allotments:

140,075,226 ordinary shares

Class of security:

Options (CROB

ISIN:

NZCRPE0001S3

Number issued:

1,500,934

Exercise price:

$0.70 per option to receive one ordinary share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

100%

Purpose of the issue:

For working capital purposes

Authority for the issue:

Board resolutions

Date of issue:

18 July 2013

Total number of securities on issue following allotments:

1,500,934 Options

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