Chatham Rock Phosphate agrees to sell Avenir unit
Asset Sales and Joint Ventures Provide Survival Capital as Chatham Struggles to Bridge Massive Working Capital Deficit
On December 22, 2025, Chatham Rock Phosphate (CRP) announced it has signed a definitive agreement to sell its unit, Avenir Makatea Pty. Ltd., to Austure Industries Pty. Ltd. for a total consideration of $1.4 million AUD ($1.25 million CAD). The deal consists of $900,000 AUD in cash to be paid over a 24-month period and a 20% shareholding in a new entity, Austure Phosphate AU Pty. Ltd. (APAU). The partnership aims to establish a 30,000 tpa Dicalcium Phosphate (DCP) and Monocalcium Phosphate (MCP) manufacturing plant in Cloncurry, Australia. This plant will utilize a "green" manufacturing technology that avoids the use of sulphuric acid and uses electricity (potentially renewable) instead.
- Cash Flow Delay: While the $1.4 million AUD figure is significant relative to the market cap, the cash portion ($900k AUD) is paid out over two years. This does not provide the immediate "shot in the arm" needed to clear current liabilities.
- Strategic Pivot: This confirms the company’s shift from being a pure explorer to an integrated producer/manufacturer. By securing a 20% stake in the DCP/MCP plant, CRP creates a captive customer for its Korella North mine output.
- Technology Risk: The proposed plant relies on a "novel green technology" that is currently being patented. There is material execution risk regarding the commercial viability and scalability of this technology.
- Asset Dilution: CRP is essentially selling its 100% interest in Avenir to become a minority partner. While this reduces capital expenditure requirements for CRP, it also limits their upside on that specific asset.
CRP is a diversified phosphate developer with three main pillars: - Chatham Rise (New Zealand): An offshore project with a 23.5 million tonne resource. This is the flagship but remains stalled due to a lack of environmental "Marine Consent" since 2015. - Korella Projects (Australia): Includes Korella North (production/feasibility) and Korella South (exploration). These are onshore and provide the most immediate path to cash flow. - Avenir Makatea (French Polynesia): An onshore rehabilitation and phosphate project, currently being divested into a JV structure.