Listed-firm Nickel Asia Corp. has taken over Geogen Corp., claim-owner of the Isabela Nickel Project, for P694 million.
”After satisfactory results of the due diligence conducted by NAC, and pursuant to the authority given to it by the Board on 05 May 2015, the Management has purchased 100% of GEOGEN for a total consideration of P694 million,” the company said in a disclosure Wednesday.
Nickel Asia Corp. said the company would pay the purchased 240 million shares in cash at P2.02 per share.
The mining and energy firm noted Geogen is the claim-owner of the Isabela Nickel Project, which covers a total area of 2,392 hectares in Dinapigue, Isabela.
Nickel Asia also said that Nihao Mineral Resources International’s operating rights in the project would be converted into preferred shares in Geogen.
The company stressed the shares would earn dividends equal to 20 percent of the operating income and net income tax.
However, Nickel Asia said a shareholder’s agreement still had to be executed between Nihao and Geogen.
Meanwhile, the firm bared it will also pay Geogen Corp. P209.23 million for assignment advances.
Nickel Asia said its latest acquisition was part of its growth strategy.
Nihao, on the other hand, said in another disclosure Wednesday that it would be issued 10 million preferred shares by Geogen Corp due to the pre-termination of the operating agreement.
Nihao added the shares had a par value of P0.01 per share, coming from its current authorized capital stock, but would still have to be approved by the Securities and Exchange Commission (SEC).
Nihao noted Geogen had granted it the operating agreement for the Isabela lot — to have the exclusive rights from occupying, mining, utilizing and milling.