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GEOGRACE Resources Philippines Inc. said it would
extend the due diligence period under the agreement it executed with
Garnierite Mining Inc. and Saprolite Mining Inc.
In a disclosure to the Philippine
Stock Exchange, GeoGrace said its board approved the extension of
the legal and technical due diligence periods for another 180 days
under the separate memoranda of agreement signed with Garnierite and
Saprolite.
According to the Philippine
listed company, the original agreements provided for 180 days for
the conduct of due diligence with a provision to extend the same as
“required by circumstances.”
Last month GeoGrace raised P560
million from the sale of new shares to existing stockholders. The
money would be used to fund exploration expenses and the purchase of
production equipment, bringing the company’s market capitalization
to $115 million.
To take advantage of rising
nickel prices, the mining firm has proposed acquiring mining rights
over 31,990 hectares from Garnierite and Saprolite.
GeoGrace has the option to enter
into a share-for-property swap agreement with the two.
The two firms can also opt for a
share-for-share swap with GeoGrace.
--Likha C. Cuevas-Miel
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