LISTED Marcventures Holdings Inc. is buying mines in Samar and Surigao del Sur through a merger and acquisition (M&A) deal with two companies that have mining operations.
In a disclosure to the Philippine Stock Exchange, Marcventures said its board of directors approved the plan to merge Asia Pilot Mining Philippines Corp. (AMPC) and the holding company of Brightgreen Resources Corp. (BRC) into the company, with Marcventures as the surviving entity.
The M&A deal is still subject to due diligence audit and approval of shareholders.
Marcventures halted trading of its shares on Friday, from 1:30 PM to 2:30 PM, to give the investing public time to digest the information.
AMPC is the owner of two bauxite miners in Samar Province, namely Alumina Mining Philippines Inc. (AMPI) and Bauxite Resources Inc. (BARI). AMPI has mining operations in a 6,694-hectare site in Motiong Town while BARI has 5,435-hectare mining operation in Gandara Town.
Bauxite is a mineral ore used to produce aluminum.
BRC, on the other hand, has nickel ore mining operations in a 4,860-hectare site in Carrascal and Cantilan, Surigao del Sur. Its mining tenement is contiguous to the mining tenement of Marcventures’ wholly owned subsidiary, Marcventures Mining and Development Corp. (MMDC). MMDC has a 4,799-hectare nickel ore mining site in Cantilan, Surigao del Sur.
In line with the M&A plan, the board also approved Marcventures’ increase of authorized capital stock to P4 billion from P2 billion previously, and its move to raise the number of directors to 11 from nine.
The board is set to call a special shareholders meeting to discuss the planned corporate amendments.
Incorporated in 1957, Marcventures is a holding firm having subsidiaries involved in mining (MMDC) and land ownership. Its mining arm MMDC mainly exports its nickel ore to China.