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By Likha C. Cuevas-Miel, Reporter
Nihao Mineral Resources International Inc. will
raise funds through a stock rights offering for its mining
activities in its nickel tenements, the company told the Philippine
Stock Exchange.
In a disclosure, the mining firm said its board
approved the sale to eligible investors who are entitled to
subscribe five rights shares for every one Nihao share held as of
record date yet to be announced.
The proceeds of the capital raising activity
will go to the exploration, project development and working capital
of its nickel mines in Botolan, Zambales, and Manitcao, Misamis
Oriental. The new funds would also be used to pay for the advances
made from shareholders.
Since last year, Nihao has been aiming to raise
P700 million through stock rights offering to finance potential
mining projects in the area in joint venture with four possible
strategic Chinese partners.
Banco de Oro Unibank has been tapped as the
receiving agent and custodian bank for the stock rights offering.
The company also signed an agreement last year
with QNI Philippines Inc., a local unit of mining giant BHP Billiton
Ltd., for its preliminary exploration of the 7,102-hectare nickel
project in Botolan and Iba, Zambales, with prospects for nickel
laterite deposits. BHP Billiton will provide technical expertise and
advice.
The accord also contains the commercial terms
for the offtake agreement, an option available to BHP Billiton,
between Nihao and BHP Billiton’s Yabulu nickel refinery in
Queensland, Australia, one of the world’s major nickel processing
facilities. The agreement will take effect once the exploration and
drilling program is concluded and would extend for five years. The
firm agreed it would deliver 500,000 wet metric tons of nickel ore a
year, based on London Metal Exchange prices.
Nihao’s affiliate firm Geograce Resources
Philippines Inc. meanwhile plans to partner with a South American
mining firm that would pour in an estimated $26 million for the
copper project within a 60,000-hectare area in Masbate.
The Geograce group also plans to put up nickel
smelting and processing plants in Bataan to service the Zambales
mines or within Philippine Veterans Investment Development Corp. in
Cagayan de Oro that would process the ores from the group’s mines
in Misamis Oriental. A group of Chinese investors will foot the bill
of the 10,000-ton a year plant. The group is also looking into the
possibility of mining iron ore and chromite.
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