LISTED Island Information and Technology Inc. is conducting due diligence on JDVC Resources Corp., a South Korean-controlled black sand mining firm, for a possible merger prior to a planned backdoor listing by JDVC on the Philippine Stock Exchange.
In a statement emailed to media over the weekend, Island Information said both parties are currently seeking a financial adviser that will guide the arrangements for the merger in line with the backdoor listing plans.
Island Information said it is assessing “the feasibility of entering into a merger, consolidation, a mutual purchase or exchange of shares, or any other form of business combination the companies might deem proper” through the due diligence that will last 45 to 60 days.
JDVC has an offshore mining agreement with the government involving a 13,240-hectare mining area in Cagayan. It is 40-percent owned by Korean Hyung Rae Doo, while the remaining stake is held by six Filipino shareholders.
Through its mineral production sharing agreement (MPSA) with the government, JDVC has the exclusive rights to explore, develop and utilize magnetite mines in the offshore areas of Sanchez Mira, Pamplona, Abulug, Ballesteros, Aparri, Buguey and Gonzaga, all in Cagayan. The magnetite will be shipped to China, Japan and Korea.
The company was originally incorporated in 1959 as Island Oil Co. engaged in oil and mineral exploration. But because of losses incurred, the company shifted to metal mining in Isabela and changed its name to Island Mining & Industrial Corp. in 1965.
In 1981, the company suspended its operations due to rising costs and fluctuating metal prices. In 2000, it again amended its primary purpose to information technology services and was approved to change its name to the present one.
In 2005, the company again amended its primary purpose to the provision of cargo container management and integrated logistics services while information technology services became its secondary purpose.