Geograce signs deal to develop Isabela mine

Mining firm Geograce Resources Philippines has signed an agreement to develop and operate Platinum Group Metals Corp.’s mine site in Isabela.

The agreement gives Geograce the exclusive right to develop approximately 45 hectares of the mineral property in Dinapigue, Isabela, the company said in a disclosure to the Philippine Stock Exchange.

The property covers a total area of 2,391 hectares with a valid mineral production sharing agreement. It is currently operational and has existing infrastructure including a motor pool, causeway, haul road, assay, laboratory, nursery, pier yard and an administration office.

Geograce will be allowed to mine up to two million metric tons yearly from the property.

The company is allotting P40 million from proceeds of a stock rights issue last year as reimbursement to PGMC for the production cost of the ore currently in stockpile from the mine site. “This amount shall be taken from the budget for acquisition of mining tenements,” Geograce said.

An official of Geograce said both companies will share in the profits to be realized from the sale of nickel ore that will be developed from the property. “The terms of the distribution of profit sharing are confidential,” the official said.

Geograce is primarily engaged in the exploration and development of mineral resources in the Philippines with particular focus on gold and nickel mining activities located in Zambales, Palawan and Bukidnon.

Headed by former Environment and Natural Resources Secretary Mike Defensor, Geograce currently has over nearly 240,000 hectares of claims in nickel, gold, copper and chromite nationwide. – Zinnia Dela Peña