Marcventures finalizes merger with 2 mines
Listed Marcventures Holdings Inc. is formally merging with two other mine companies in a bid to diversify its products and expand its business.
In a disclosure to the local bourse, the company said its board approved the planned merger of Asia Pilot Mining Philippines Corp. and BrightGreen Resources Holdings Inc. with Marcventures as the surviving entity.
Marcventures will issue 675 million shares at P1 per share in favor of the shareholders of Asia Pilot. It will also issue 450 million shares to BrightGreen at the same par value.
It is set to become the only company that can extract bauxite and aluminum ore following its acquisition of Asia Pilot and the holding company of BrightGreen.
Asia Pilot is the owner of Alumina Mining Philippines Inc. with a mineral production sharing agreement covering close to 6,700 hectares and Bauxite Resources Inc. with an area over 5,400 hectares, both in Samar province.
The two sites have an aggregate measured and indicated resource of 116.4 million metric tons of bauxite.
“The merger will allow us to grow our business, diversify our products and expand our source of income. Bauxite has been observed to be more stable in prices as compared to other commodities even during the slump of metal prices," Marcventures said.
On the other hand, BrightGreen holds an MPSA covering 4,860 hectares in Carrascal and Cantilan, Surigao del Sur.
Its mining tenement is contiguous to the mining tenement of wholly-owned subsidiary Marcventures Mining and Development Corp. which has a total resource of about 21.06 million wet metric tons.
“Our objective is to gain control of BrightGreen in order to increase the nickel reserves of our own nickel mines pursuant to a possible venture into nickel processing," the company said.
The main sources of aluminum are Australia and China which are also the big users of the product, together with Europe and the US.
With the merger, Marcventures will be the only mining company capable of extracting the mineral, which is found only in Samar since the two acquired companies are the only ones currently allowed to mine bauxite in the country.
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