Nihao acquires stake in nickel mining firm

MANILA, Philippines - Publicly-listed mining firm Nihao Mineral Resources International Inc. has acquired a third of Oriental Vision Mining Philippines Corp. (ORVI) for P3 million.

In a disclosure to the Philippine Stock Exchange, Nihao said it acquired from various shareholders a 30 percent equity interest in ORVI, which is currently developing and operating three nickel projects located in Dinagat Islands, Surigao del Norte and Isabela provinces.

ORVI is a 100 percent Filipino-owned multi-mineral mining venture chaired by businessman Salvador B. Zamora II.

Nihao said it has also agreed to extend shareholder advances in favor of ORVI, payable either in cash or in shares of stock.

The company said it is committed to acquire an additional 60,000 shares from current ORVI shareholders for P60 million pending approval by the Securities and Exchange Commission of Nihao’s increase in authorized capital stock to P400 million.

Nihao has paid ORVI shareholders a downpayment of P30 million and the balance of P30 million will be paid upon approval by the SEC of the increase in ORVI’s authorized capital stock.

As of end-December 2008, Nihao had four four mining claims located in the provinces of Zambales, Misamis Oriental, North Cotobato and Antique. It also operates three small-scale mining claims in Botolan, Zambales, as well as a small-scale mining claim in Manticao, Misamis Oriental. Its subsidiaries include Mina Tierra Gracia Inc., Visayas Ore Philippines Inc. and Bountiful Geomines Inc.

Nihao is aiming to become a leading nickel mining and processing company in the country by building up its operating capability to explore and develop its mining claims, entering into strategic alliances and joint ventures, establishing a strong base of Chinese clients, and pursuing strategic acquisitions.

The company has six wholly-owned subsidiaries that are engaged in mining exploration and small-scale mining activities.