Geo Grace Resources plans to raise $10M

Geo Grace Resources Phils. Inc. (formerly Global Equities Inc.) plans to raise $10 million from the equities market or through an asset for share swap to fund proposed mining initiatives.

Geo Grace chairman Jerry Angping said the company is in talks with several foreign mining companies, which he refused to identify, for strategic partnerships. Negotiations with these firms, he said, are expected to be completed in the next few months.

David Dela Cruz, Geo Grace president, said these strategic alliances shall ensure the company’s strong sustainable growth over the years.

"Our business model will cover a diverse base of commodities along with the maximum geographic coverage we can achieve. This would enhance overall value potential as asset acquisitions will be spread strategically among areas that are identified as those with the highest potential for mineral exploitation," Dela Cruz said.

Dela Cruz said GEI is also in talks for possible joint venture with entities holding mining claims in the country which contain deposits of precious metals, base metals, ferrous and non-ferrous metals and other industrial minerals.

GEO Grace shareholders approved Friday the change in GEI’s primary purpose to mining exploration and change in corporate name.

Angping said the group’s decision to go into mineral development was in line with efforts to enhance the the company’s value.

Angping replaced businesswoman Nora Bitong in August after the GEI 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.

Geo Grace was first incorporated as La Suerte Gold Mining Corp. on April 20, 1970 to engage in various aspects of the mining business but realigned its business to that of an investment holding company in 1995.