Geograce shares have appreciated by more than 150 percent since the start of the year. Geograce closed at P1.82 Friday, 13.75 percent higher than the previous close of P1.60 each share.
An SEC official expressed concern over the string of news reports being released by Geograce which might be intended to prop up the share price of the company. "We need to look into the disclosures they’ve made because we don’t want this thing to blow up in our faces. This could be a BW Resources Corp. in the making if left unchecked. We can’t afford to be complacent. We have a very strong market," the SEC official said.
"Another stock market scandal would wipe away whatever gains we have achieved and ultimately result in loss of investor confidence. We certainly don’t want this thing to happen," the same SEC official said.
The SEC official said the agency will look into those people and brokerage houses that have heavily traded shares of Geograce to determine whether there is a concerted effort to hype up the share price of the company.
"It was only late last year that Global Equities now known as Geograce converted itself to a mining company. And all of a sudden it gets the attention of foreign mining companies. We just want to make sure that all these agreements or disclosures are not part of a media hype to drum up interest in the company," the SEC official said.
The SEC official, however, pointed out out that Geograce has not been charged of anything yet and the investigation is being made as part of its routinary audit functions.
Geograce has been aggressively acquiring nickel mine deposits and properties in Zambales and Palawan as part of its long-term plan to build up its nickel assets in the country and take advantage of rising nickel prices.
Geograce offered a share for share or property-for-share swap for Garnierite’s nickel mine deposits and properties and Saprolite Mining Inc.’s nickel-chromite and nickel-cobalt mine deposits. Both Saprolite and Garnierite are owned by stockbroker Jerry Angping, who is also Geograce’s chairman.
Earlier reports also said Geograce was in talks with Chinese giant Jinchuan Nonferrous Metals Corp. on a joint venture involving its nickel mining rights. The deal also reportedly involved taking an equity position in Geograce.
Geograce also reported that it received a letter of intent from Rusina Mining NL to jointly explore and develop various mining projects within the Philippines.
"We really hope to get more information from them. They should submit a work program for all their proposed projects to properly guide the investing public," the SEC official said.