Marcventures Holdings to raise P37.5M from issuance of warrants

Publicly-listed Marcventures Holdings Inc. may raise around P37.5 million from the issuance of warrants.

The company will issue up to 85.11 million common shares at a price of P2.20 per share in favor of the lenders according to the terms of the convertible loan series and 17.02 million warrants.

Should all the warrants be exercised, the gross proceeds of P37.5 million will be used to fund the exploration program of its unit Marcventures Mining & Development Corp. (MMDC).

Upon conversion of all or a portion of the loan, a lender will be entitled to subscribe to one warrant share for every four conversion shares. The warrants are detachable and are subject to a two-year exercise period from issue date of the warrant.

Each Warrant entitles the holder thereof to the right to subscribe to one common share of Marcventures Holdings for every warrant at the exercise price of P2.20 per common share, subject to certain adjustments as provided in the warrant instrument.

Headed by former Lepanto Consolidated Mining president Ramon Recto, MMDC has a mineral production sharing agreement to mine 4,799 hectares of the Surigao del Sur property for nickel and gold. Only 2.5 percent of the total has been explored.

MMDC is building up capacity within its 120-hectare mine site from the current one million wet metric tons to 1.5 million WMT per year.

It is targeting to make 16 to 20 shipments this year for total volume of 800,000 to one million WMT.

MMDC reported a 142-percent jump in shipment volume in the first nine months of the year. The company effected a total of 10 shipments with an aggregate volume of 525,593.71 wet metric tons, Estimated revenues for the nine-month period ending September 2012 amounted to $14.21 million, up 56 percent year on year despite significantly lower nickel prices.