Chatham Rise Rock Phosphate Project Report
New Zealand Exchange Limited
P.O. Box 2959
Wellington
31 March 2010
Dear Sir,
CHATHAM RISE ROCK PHOSPHATE PROGRESS REPORT
Four weeks ago a Joint Venture comprising Widespread Energy and associated company Widespread Portfolios Limited was granted an offshore prospecting permit covering an area of 4,726 km2 on the central Chatham Rise.
Since then the Joint Venture has:
- Raised further capital to finance an accelerated work programme.
- Contracted NIWA to undertake a series of environmental studies in order to fully understand the marine environment in our licence area
- Commenced negotiations with NIWA concerning the digitisation and re-analysis of historic exploration data. This work is expected to commence soon.
- Engaged geological consultants Kenex Limited to undertake permit management and reporting to Crown Minerals, interpretation of historic data, and design of the second year exploration programme
- Mandated Rockpoint Corporate Finance to complete a pre-feasibility study and independent project valuation. This work is already well advanced.
- Marketed the project to the share-broking industry in Wellington (this communications programme will be extended throughout NZ and overseas)
- Established a Wellington headquarters
- Commissioned a new project focussed website (www.rockphosphate.co.nz) which is expected to go live in early April
Significantly, most of the new capital raised came from two experienced overseas investors.
John Quinn, whose interests now hold 5.1% of Widespread Energy, is presently chairman of ASX listed King Solomon Mines and has worked for more than 30 years in the mining industry. He played a key role in the formation of Newmont Australia in 1987 as well as the creation of Newcrest Mining Limited in 1990 where he was Managing Director for 8 years.
James Askew has a similar mining sector pedigree and is presently chairman of Oceana Gold, Asian Mineral Resources, past chairman of China based Sino Gold and either a past or current director of numerous other substantial mining companies. His interests hold 8.2% of Widespread Energy.
Both investors have indicated that they will support the share purchase plan presently in progress.
The rapid commencement of the project work programme is consistent with our desire to complete the year-one tasks ahead of schedule. This will ensure that the year-two work programme (principally comprising data gathering at sea) can be undertaken during early 2011 when weather conditions are usually more benign.
Shareholders can expect further regular progress reports on the rock phosphate project.
For and on behalf of the Board,
Chris D Castle
Wellington, 31 March 2010
