PLATINUM Group Metals Corp. (PGMC), a subsidiary of listed nickel miner Global Ferronickel Holdings Inc. (FNI), has doubled its capital stock to provide additional funds for start-up operations which began in March this year.
In a disclosure to the stock exchange, FNI said PGMC increased its authorized capital stock to P1.51 billion from P715.37 million.
Of the increased capital stock, FNI subscribed 20 billion class A common shares with a par value of P0.01, it said.
“The increase is for additional working capital, which is also a part of the capital restructuring when funds flow from the follow-on offering,” Dante Bravo, FNI executive vice president and corporate secretary, said in a text message.
Asked further where the extra funds will be particularly used, Bravo said the funds will go partly to finance PGMC’s start-up operations which began in the last week of March.
Since its P7.5-billion follow-on offering at the end of the first quarter, FNI has been improving its mining operations, targeting 6 million to 7 million metric tons nickel production this year from its Cagdianao mine in Surigao del Norte, and an additional 2 million to 3 million MT volume production in the next two to three years from its newly acquired Palawan and Zambales mines which started operations recently.
Bravo earlier said that in two to three years’ time, production may go up to 10 million MT with the addition of the expected Palawan and Zambales volume production.
And with the expansion efforts in line, FNI’s 2015 net income is seen to grow in “single to double digits” this year from a year ago, he added.
The company has a total of 4,376 hectares of mine reserves in its Surigao mining site, of which only 217 hectares have been exploited to date.