Marcventures pursues merger plans worth B
Listed mining firm Marcventures Holdings, Inc. (MHI) is looking to pursue merger plans that could amount to more than a billion as it eyes access to aluminum ore and increased nickel reserves.
The Board of Directors of MHI particularly approved the company's plan to merge with Asia Pilot Mining Phils. Corporation (APMPC) and BrightGreen Resources Holdings, Inc. (BHI), with MHI as the surviving entity.
APMC is the owner of Alumina Mining Philippines Inc. (AMPI) and Bauxite Resources Inc. (BARI) – properties in Samar containing bauxite, the main source of aluminum. Right now, bauxite has been observed to be more stable in prices as compared to nickel ore.
BHI, on the other hand, owns BrightGreen Resources Corp. (BRC) mining, which has a property contiguous to the operating nickel mine of MHI’s wholly owned subsidiary, Marcventures Mining and Development Corp. (MMDC), in Surigao del Sur.
As consideration for the mergers, MHI said it will issue 675 million shares in favor of APMC shareholders and 450 million shares in favor of BHI shareholders or a total 1.13 billion shares at par value of R1.00 per share.
AMPI holds a mineral production sharing agreement (MPSA) for a 6,694-hectare tenement located in Motiong and Paranas (formerly Wright) municipalities in Samar Province. BARI, for its part, owns a 5,435-hectare MPSA in the towns of Gandara, San Jorge, San Jose de Buan and Matuginao in the same province.
BHI, through BRC, owns a 4,860-hectare tenement in Carrascal and Cantilan, Surigao del Sur.
"The merger with APMPC will allow MHI to grow its business, diversify its products and expand its source of income," MHI said.
"MHI’s objective in merging with BHI is to gain control of BRC in order to increase the nickel reserves of MMDC in case the Company or its subsidiary decides to venture into nickel processing," it added.
MMDC currently performs mining operations in the municipalities of Cantilan, Carrascal, and Madrid in the same province pursuant to an MPSA covering an area of 4,799 hectares. It extracts nickel ore, which the company sells to third parties by direct shipment, mainly to China.