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VULCAN Industrial and Mining Corp. told the Philippine Stock
Exchange on Friday that it took out a loan to bridge its funding
requirements as it awaits a scheduled share sale.
In its disclosure, the mining firm said it
signed an omnibus secured loan worth P50 million and a pledge
agreement with AB Capital and Investment Corp. and AB Capital and
Investment Corp.-Trust and Investment Division to fund exploration
projects. After securing the one-year term loan, Vulcan would then
be applying for an increase in its authorized capital stock for
which the pledged shares would apply. The mining firm also has the
option to prepay the loan.
In October last year, Vulcan’s board approved
the plan to sell additional shares to its existing shareholders and
to accommodate this, it would increase its authorized capitalization
from P600 million to P1.5 billion.
Of the P900-million increase, P525-million worth
of shares would be sold to a private group.
Another P300-million worth of shares would be
offered to existing shareholders at one share for every two shares
they hold as of record date and upon terms and conditions determined
by the board.
At end-September, Vulcan’s consolidated gross
revenue more than doubled to P92.09 million year on year, allowing
it to revert to profitability at P17.95 million from a net loss of
P1.90 million during the same nine-month period the previous year.
Its revenues were mainly derived from sale of
aggregates of subsidiary, Vulcan Materials Corp., while the parent
firm focused on exploration activities. Sale of aggregates jumped by
almost 49 percent to P 20.63 million as sales volume and prices went
up.
As of September last year, Vulcan said it “is
almost finished” with the scheduled confirmatory drilling program
in the Sipalay, Negros copper project.
Last month, Vulcan disclosed that Intex
Resources Philippines Inc. is conducting due diligence on one of its
gold tenements in Cordon, Isabela. Under the “farm-out”
agreement between the two mining firms, Intex will study whether the
mining site would be a viable investment.
-- Likha C. Cuevas-Miel
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