LISTED firm Premier Horizon Alliance Corp. (PHA) has increased its programmed capital expenditure (capex) this year to P366.55 million from an original P200 million to fund the projects of its mining subsidiary, Redstone Construction and Development Corp. (RCDC).
In a disclosure to the stock exchange, PHA said it added P166.55 million to its previously announced P200 million capex for 2015 to support the service mining contracts of RCDC.
RCDC’s mining contracts are good for the next three years.
PHA said the added capital will be “used to purchase additional trucks, heavy equipment, auxiliary machineries, support vehicles and various camp site facilities.”
In the same disclosure, the firm said it increased its stake in RCDC to 80 percent from the previous two-thirds or 67 percent controlling stake.
The transaction is seen to increase PHA’s profit and revenues as RCDC is projecting a record year in production volume—targeting 4.8 million wet metric tons (WMTs), which is more than five times the total output in 2014.
RCDC is engaged in contract mining and construction works for mining, real estate development, and environmental protection and remediation projects including quarrying, hauling, earthmoving and heavy equipment rentals.
Since 2011, the mining unit has been servicing mining contracts for Marcventures Inc. and other mining companies.
Incorporated in 1988, PHA was previously an entertainment, gaming and hotel firm. In December 2011, the Securities and Exchange Commission approved a change in corporate name to the present one and authorized the company to expand to mining and real estate industries.
Today, PHA is an investment holding company which focuses on projects that invigorate the countryside. It recently completed the acquisition of 51 percent of a cooling solutions provider, Concepts Unplugged Business Environment Solutions Inc.