The challenge of a dissident stockholder struck down with finality by the Supreme Court, the Nationwide Development Corp. (Nadecor) held on Monday its 2013 annual general shareholders’ meeting, where a new Board of Directors for 2013-2014 was elected.
Company president and major shareholder Conrado Calalang presented a comprehensive President’s Report which covered key subjects such as its joint venture partner St. Augustine Gold and Copper Ltd.’s $43.5-million investment in Nadecor, and the steady progress of the company’s flagship project, the King-king Copper and Gold Mine, including work on the preliminary feasibility study (PFS).
Re-elected as directors, who represent the largest investor group in the company as well as independent investors, were: Roberto Romulo (chairman), Conrado Calalang (president), Leocadio Nitorreda (chief operating officer and general counsel), Alfredo Ayala, Juan Kevin Belmonte, John Engle and Peter Mutuc. Representatives of St. Augustine, Tom Henderson and Kee Ming Chi, were also elected to the board.
St. Augustine announced on June 28, 2013 that it had acquired new shares representing 25 percent of Nadecor for $43.5 million. St. Augustine is listed in the Toronto Stock Exchange and is run by industry leaders who have a proven record of discovering, exploring and developing valuable mining assets around the world.
Nadecor Chairman, Ambassador Romulo, said that, “I am delighted that Nadecor has been able to attract significant foreign direct investment into the Philippine mining sector, and pleased that we and our partner St. Augustine are making steady progress in the development of this major project, which will generate thousands of new jobs in Compostela Valley.”
One of the largest shareholders in St. Augustine is Queensberry Mining and Development Corp., the resource investment arm of the family of former Sen. Manny Villar. Following its investment of $11 million in May 2013, Queensberry now holds 18 percent of St. Augustine and has the option to increase its holding to 32 percent.
Calalang reported that Nadecor’s relationship with St. Augustine is “strong and continues to deliver clear benefits for the company and the project.”
Favorable court decisions
He noted that the Court of Appeals decision on February 18, 2013 is legally binding and immediately effective, and removes any doubt as to who is authorized to represent Nadecor as its board of directors, and therefore the authority of the newly-elected board and the board immediately preceding it is clear.
Calalang also noted that the challenge of dissident shareholder Jose Ricafort was thrown out by the Court of Appeals, and that the administrative complaint he filed against the Court of Appeals justices who rendered the same decision, was dismissed by the Supreme Court by a vote of 15-0 on February 19, 2013.
Calalang also clarified that press reports of rescission by Nadecor of agreements between the partners, particularly the Memorandum of understanding signed in April 2010, were erroneous. He also stressed that the law firm of Poblador and Zamora has not been appointed by the company and has no legal authority to act for Nadecor.
The company reviewed the PFS for the project and is satisfied that considerable progress has been achieved. The study is expected to be published by the joint venture partners in the near future, and will demonstrate the strong viability of the project. The company has also established a corporate website, www.nadecor.com.ph and a new office at Unit 1401, Pearlbank Centre, 146 Valero Street, Salcedo Village, Makati City.
King-king is a gold rich copper-gold porphyry deposit located in southeast of Mindanao. The project is listed as one of the top priority projects by the Philippine Mines and Geosciences Bureau. The project has a low strip ratio and is in the advanced stage of design and engineering. King-king is essentially complete with the feasibility stage of development (social, environmental and engineering phases).
The project is one of the largest undeveloped copper-gold deposits in the world with a mineral resource of 962 million tons at 0.254 percent total copper, and 0.334 grams per ton (g/t) gold. Inferred mineral resources are an additional 188.8 million tons at 0.215 percent total copper and 0.265 g/t gold. The mineral resource consists of 5.4 billion pounds of contained copper and 10.3 million troy ounces of contained gold.