Geograce Resources, Aussie mining firm tie up for Zambales project

Geograce Resources Phils. Inc. (formerly Global Equities Inc.) has entered into an agreement with Australian firm Rusina Mining N.L. for possible joint mining and exploration development projects in the Philippines, particularly in Zambales.

In a disclosure to the Philippine Stock Exchange, Geograce said the strategic partnership will initially cover a share swap of Geograce and Rusina shares and the establishment of a joint venture company.

Geograce chairman Jerry Angping said the amount and valuation of the shares have yet to be determined but may be about five percent of Rusina’s capital stock as generally agreed by the parties.

Angping said the agreement also calls for Geograce’s subscription of up to 100 percent of Fil-Asia Strategic Investment Holdings Corp.’s class A shares, to be paid by way of Geograce shares and/or mining claims in Surigao, Bukidnon and Zambales.

Fil-Asia is Rusina’s partner in the development of a nickel and chromite property in the Philippines.

"We’re investing in Fil-Asia because they need a local partner," said Angping.

Angping said the joint venture company will be owned 50 percent by Fil-Asia Holdings, 40 percent by Rusina and the balance of 10 percent by CRAU Minerals Corp. which will assign its mineral production sharing agreement to the joint venture firm.

Angping said the proposed transaction is expected to be completed next month.

"We will be the local partner of Rusina. We will look at properties together but we might focus in Zambales," said Angping.

He said Geograce is still open to forging partnerships with other foreign mining companies for its other mining tenements or projects.

Angping said the company is in talks with at least five foreign mining companies but refused to divulge their identities pending completion of negotiations with the parties.

Rusina is engaged in the acquisition and exploration of platinum group metals, nickel, diamonds, precious metals, rare metals and base metals. One of its projects includes the Acoje platinum nickel sulphide project.

Geograce plans to raise $10 million in funds from the equities market early next year to finance its mining initiatives.

The company 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.

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

He 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.

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