Global Equities shifts focus to mining under new management

Under a new management, listed investment holding company Global Equities Inc. (GEI) is joining the growing list of companies venturing into the mining industry, banking on the renewed interest in the country’s mineral resource exploration and development.

In a disclosure to the Philippine Stock Exchange, GEI said its board approved late last week the change of the company’s corporate name to Geo Grace Resources Phils. Inc. to reflect the shift in its primary purpose to mining and exploration.

GEI said it is now in talks for possible joint venture/strategic partnership with entities holding mining claims in the country such as those which contain deposits of precious metals, base metals, ferrous and non-ferrous metals and other industrial minerals.

The company pointed out that no definitive agreement has yet been reached with the parties. "GEI is still conducting due diligence on the authenticity of the mining claims," it said.

The plan to go into mineral development was in line with efforts to enhance the company’s value.

Stock broker Jerry Angping has replaced businesswoman Nora Bitong as GEI chairman in August after the company’s board approved the assignment and conveyance of substantially all the firm’s assets with a book value of P863.68 million to Bitong for advances she extended to the company. Also part of the deal is the assumption by Bitong of all the liabilities of GEI and its subsidiaries amounting to P1.38 billion.

Upon completion of turnover of the company’s assets and liabilities to Bitong, GEI shall have residual net assets of P18.39 million and liabilities of P18.378 million, while accumulated deficit shall be reduced from P2.24 billion to P1.96 billion and the negative stockholders equity of P275.27 million will be wiped out.

GEI was first incorporated as La Suerte Gold Mining Corp. on April 1970 to engage in various aspects of the mining business but realigned its business to that of an investment holding company in 1995.

As a holding company, GEI had interests in the manufacture of absorbent cotton and personal care products, as well as in the provision of specialized corporate facilities for end-users.

Other companies that also recently dipped their fingers into mining or revived mining projects include Belle Corp., MacroAsia Corp., and the APC Group.