Philippines’ nickel miner Marcventures Holding Inc is merging with two miners Asia Pilot Mining Philippines Corp. (APMPC) and BrightGreen Resources Holding Inc. (BHI) in a deal valued at US$22.1 million (P1.125 billion).
The company plans to issue a total of 1.125 billion shares priced at P1.00 apiece, comprising of 675 million shares for APMPC shareholders, and 450 million shares for BHI shareholders.
Following this acquisition, publicly-listed Marcventures will gain control of a bauxite mine in Samar, as well as a new nickel mine in Surigao del Sur which is adjacent to its existing operations.
Bauxite is a highly valued raw material used to produce aluminium alloys, which can be essential to industries like aerospace, transportation, construction, and various manufacturing lines.
APMPC is the owner of Alumina Mining Philippines Inc (AMPI) which holds a mineral production sharing agreement (MPSA) over 6,694 hectares of mining area in Motiong, San Jose De Buan, and Wright in the Province of Samar.
The company also owns Bauxite Resources Inc (BARI) that operates in 5,435 hectares of mining areas in Gandara, San Jose de Buan and Wright, in the Samar province.
Meanwhile, BHI owns BrightGreen Resources Corp. (BRC) which holds an MPSA covering approximately 4,860 hectares in Carrascal and Cantilan in Surigao del Sur.
“Marcventures’ objective in merging with BHI is to gain control of BRC in order to increase the nickel reserves of MHI’s nickel mines pursuant to possible ventures into nickel processing.”
Marcventures expects the merger to grow its business, diversify its portfolio and expand its source of income.
“The two MPSAs are the only ones currently allowed to mine Bauxite in the Philippines. This will make Marcventures the only mining company to be able to extract the mineral, which is found only in Samar.”
The company also notes that bauxite has been observed to be more stable in prices as compared to other commodities even during the slump of metal prices.
This news is published on Reuters.