Would-be miner Chatham Rock reaches new high
Shares in NZAX-listed Chatham Rock Phosphate (NZX: CRP) leaped five cents today to 45 cents, a new high.
Today's 12.5% jump means the stock has more than doubled in less than three weeks and has a market capitalisation of $57 million. It started the year at 17 cents.
The company plans to mine phosphate from the sea floor, at depths of 400m, on the Chatham Rise about 450km east of Christchurch.
It is hoped the fertiliser chemical will replace about one million tonnes used on New Zealand farms each year, mainly imported from Morocco, with the rest for export.
The company applied for a mining licence late last month and hopes to start production in December 2014.
NBR ONLINE revealed last week the company is able to apply for permission to mine under an act with no specific environmental regulations.
Last month, Chatham Rock shareholders signed off on a plan to issue 27.5 million shares to global dredging giant Royal Boskalis and American investment company Subsea Investments.
The company will seek a further $US10 million in a Toronto Stock Exchange listing before Christmas and has been consulting with Chatham Island community and industry groups.
“It’s gratifying to see the market is recognising the potential of this unique project," Chatham Rock managing director Chris Castle says in a statement this afternoon.