WELLINGTON, New Zealand,
Jan. 31, 2019 /CNW/ - Chatham Rock
Phosphate Limited (TSXV: "NZP" and NZAX: "CRP" or the "Company")
announces that it has terminated the convertible note offering
described in the Company's news release dated January 16, 2019. Instead, the
Company is proceeding with a non-brokered private placement of up
to 8,000,000 units (the "Units") at a price of CAD$0.1275 per Unit (NZ$0.142) for gross proceeds
of up to CAD$1,020,000.
Each Unit will consist of one common share in the capital of the
Company and one-half of one non-transferrable share purchase
warrant ("Warrant"). Each whole Warrant will entitle the
holder thereof to acquire one common share at a price of
CAD$0.45 (NZ$0.50) per share at any
time prior to the date that is two years from the date of
issuance.
In the event that the common shares of the Company trade on the
TSX Venture Exchange at a closing price of greater than
CAD$0.60 (NZ$0.67) per common share
for a period of 20 consecutive trading days at any time after four
months and one day after the closing date of the private placement,
the Company may accelerate the expiry date of the Warrants by
giving notice to the holders thereof by way of a news release and
in such case the Warrants will expire on the 30th day
after the date of dissemination of the news release.
The proceeds of this placement will be used to progress the
re-application for the environmental permit during the next
year.
Finders' fees may be payable in cash to arm's length parties in
connection with this placement as permitted under the policies of
the TSX Venture Exchange. The private placement is subject to
the acceptance by the TSX Venture Exchange and is expected to close
on or before February 28.
Neither the Exchange, its Regulation Service Provider (as
that term is defined under the policies of the Exchange), or New
Zealand Exchange Limited has in any way passed upon the merits of
the Transaction and associated transactions, and has neither
approved nor disapproved of the contents of this press
release.
SOURCE Chatham Rock Phosphate