|
Geograce Resources Philippines Inc. has tied up with a South
American mining firm through its local unit for the development of
its mining tenements in Masbate, the publicly listed firm said in a
statement.
The company signed an agreement with Vale
Exploration Philippines Inc., the local subsidiary of Companhia Vale
do Rio Doce (Vale), one of the largest metals and mining company in
the world and the largest in the Americas.
The two parties agreed that Vale Exploration
Philippines will inject $6 million for the next three years to
finance early-stage exploration on Geograce’s mining claims in the
island province. Geograce is then tasked to secure approvals and
work on community relations on the project. By the end of the
exploration, Vale may take an undivided 51-percent interest in the
Masbate claims through a joint venture with Geograce, which will
lead to a pre-feasibility and bankable feasibility studies on the
said mining tenements.
The exploration project will cover seven mineral
claims covering 84,046 hectares in Masbate, which is about 350
kilometers south of Manila. Geograce’s mining property is adjacent
to the Aroroy gold mine of CGA Mining of Australia. “Masbate was
the subject of previous studies done by international agencies,
which indicated high prospectivity for gold and copper deposits
based on the island’s extensive mineralization,” Geograce said.
Earlier, Geograce said it 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
for the 10,000-ton a year plant, the source said.
Besides nickel and copper, the Geograce group is
also looking into the possibility of mining iron ore and chromite,
prices of which are also climbing in the world market due China’s
demand for the minerals.
During the first quarter, the company incurred a
net loss of P17.18 million, almost P2.5 million higher than last
year due to exploration costs, professional fees, salaries, rent and
utilities and other expenses. It managed to shore up P2.6 million in
gross revenues from zero revenues the previous year.
-- Likha C. Cuevas-Miel
|
