Chatham to sell Korella North and South leases to Marshall Group

WELLINGTON: Chatham Rock Phosphate has reached an agreement in principle to sell four mining and exploration leases to the Australian entity Marshall Group.

The properties involved are Korella North and South, currently held by Chatham’s 100% owned subsidiary, Avenir Makatea Pty Limited (AML).

The leases to be sold include ML100379, EPM 28589, and EPM 28882 in Korella North, and EPM 28178 in Korella South.

The sale price is set at AU$4.1 million (CA$3.65 million, NZ$4.5 million) to be paid upon transfer of the leases. Additionally, a royalty of AU$10 per tonne for the first 0.19 million tonnes of production will be paid to AML, totaling AU$6 million (CA$5.34 million, NZ$6.6 million). Following the initial production, a further royalty of AU$1 per tonne will be paid to AML until March 31, 2040.

These transactions are contingent upon the successful completion of a due diligence process by the proposed purchaser, which is expected to be completed by March 31, 2025. The agreement also requires the negotiation of a definitive purchase and sale contract and, if necessary, TSXV approval.

Chatham Rock Phosphate Limited signs lease for Korella Phosphate Distribution Hub