23 Apr 2014

NY investors underwrite CRP issue

2:33 pm on 23 April 2014

A mysterious group of New York-based investors has underwritten seabed miner Chatham Rock Phosphate's rights issue after the company's four largest shareholders didn't participate in the fund raising.

Chris Castle.

Chris Castle. Photo: SUPPLIED

Chatham has raised $2.1 million in a one for ten rights issue to help pay for its marine consent to mine phosphate on the Chatham Rise off the coast of New Zealand.

Existing shareholders took up only $1.8 million worth, with the remaining money coming from the underwriter, Vista Grande.

Chatham Rock's chief executive, Chris Castle, says the people behind the investment company want to remain anonymous.

But he says the company wasn't expecting the rights issue to be so popular, especially considering the four biggest shareholders didn't participate.

Radio New Zealand rang Vista Grande's New York number and was told it didn't want to speak to the media because it wants to remain private.

Meanwhile, Chatham Rock plans to list on London's Alternative Investment Market in June, raising a further $8 million.