News Summary
The most recent news release (December 23, 2025) confirms the closing of a non-brokered private placement. The company raised $158,150 CAD through the issuance of 3,162,995 units at $0.05 per unit. Each unit consists of one common share and one warrant exercisable at $0.12 for 12 months. Notably, the placement included participation from “certain insiders,” indicating a reliance on internal support to sustain operations. This follows a more strategic announcement on December 22, 2025, regarding the proposed sale of its Avenir Makatea unit for $1.4 million AUD to Austure Industries, which includes a 20% interest in a new dicalcium phosphate (DCP) manufacturing entity.
Material Impact
The impact of the December 23 financing is neutral and routine. While it provides immediate working capital, the amount is insufficient to fund major development at Chatham Rise or Korella. It is essentially a “keep-the-lights-on” financing.
– Comparison to History: Throughout 2025, Chatham has executed multiple small-scale financings ($111k in March, $138k in July, $175k in June, $500k in October). This pattern reveals a company struggling to maintain a treasury while waiting for larger liquidity events (asset sales).
– Materiality of Asset Sales: The December 22 announcement regarding the $1.4M AUD sale of Avenir is far more significant than the $158k placement. However, the Korella project sale (originally $4.1M AUD cash) has been extended and moved to a “non-exclusive” basis as of April 2025, which increases risk that the larger expected cash infusion may not materialize as originally planned.
Catalysts
– Korella Asset Sale: Confirmation of whether the $4.1M AUD sale of Korella North/South will actually close or if the non-exclusive status leads to a collapsed deal.
– Definitive Agreements: Execution of the definitive agreement for the Avenir Makatea sale (expected by end of December 2025).
– New Zealand Permitting: Any updates on the “fast-track” reapplication for marine consent on the Chatham Rise project. This remains the company’s ultimate value driver but also its most difficult hurdle.
– DCP Plant Feasibility: Progress on the 30,000 tpa plant in Cloncurry and the licensing of the “green” manufacturing technology.
Materiality Conclusion
The most recent financing is a minor event that highlights the company’s continued dependence on small, dilutive capital raises to fund administrative costs. It does not fundamentally change the company’s valuation or risk profile. The real materiality lies in the success or failure of the pending asset sales (Korella and Avenir), which are intended to pivot the company from an explorer to a royalty-holder and JV partner.
