CRP Develops Future Plans for Chatham Rise Project
- Research & Development
Chatham Rock Phosphate has continued to develop its future plans following the refusal of its Marine Consent application.
As previously announced, CRP has no intention of abandoning its Chatham Rise phosphate project and is continuing to develop strategies for progressing the project, the company informed.
CRP intends to continue to work with the Environmental Protection Authority to seek clarity on the interpretation of the EEZ legislation and the EPA’s policies and procedures for managing the consent process.
The Board and Executive team have each confirmed their commitment to supporting CRP and progressing the project over the next 12 months.
In doing so they have each agreed to significant reductions in remuneration to reduce overheads for CRP.
Considerable work is going into reducing overheads in CRP, working through cash requirements for the next 12 months and settling final costs associated with the Marine Consent process. The purpose of this work has been to develop a 12 month budget for keeping the project moving forward (including provision for a small amount of scientific and technical work), continuing work towards a re-submission of the Marine Consent application and increasing CRP’s focus on its Namibian permit applications. This capital requirement has been assessed at $1.25 million.
CRP intends to conduct either a rights issue or share purchase plan offer to shareholders in the near future as a first step towards funding this capital requirement. Given the prevailing market price of shares CRP is conscious that the offer will be highly dilutive and therefore will ensure shareholders have first priority to invest. Any shortfall from such offer will then look to be placed to non-retail investors, CRP said.
CRP also said it will use the current time to assess its overall business strategy.