Hallmark, Austral-Asia tap Nickel Asia services

HALLMARK Mining Corp. and Austral-Asia Link Mining Corp. have accepted Nickel Asia Corp.’s bid to provide services in relation to two developments in Davao Oriental. “[O]n Feb. 17, 2023, Hallmark Mining Corporation and Austral-Asia Link Mining Corporation accepted Nickel Asia’s Letter of Intent (LoI), for the company or its wholly-owned subsidiary, to be the sole and exclusive mining service contractor for the Mineral Production Sharing Agreement (MPSA) of the two companies,” Nickel Asia said in a disclosure.

An MPSA is one of three types of mineral agreements that the government grants to a contractor for the right to mine within, but with not title over, a contract area.

Under it, the government shares in the mine’s output, whether in kind or in value, as owner of the minerals. In return, the contractor provides the financing, technology, management and personnel for the project.

Hallmark’s MPSA 196-2004XI covers 4,999.71 hectares of land located in Mati and San Isidro, Davao Oriental while Austral-Asia’s MPSA 197-2004XI covers 5,000 hectares located in Mati and Gov. Generoso, Davao Oriental.

Nickel Asia will also study the economic and technical viability of establishing a highpressure acid leach or any equivalent mineral processing plant within the two MPSA areas.

Nickel Asia said the commitments under the LOI were subject to the conduct of due diligence and exploration activities as well as the execution of definitive agreements among the parties.

Nickel Asia shares fell by seven centavos or 0.95 percent on Friday to P7.29 per share.