Omico confirms Ongpin group interest to invest in company

MANILA, Philippines - Listed mining and real estate development firm Omico Corp. confirmed yesterday that the group of former Trade Minister Roberto V. Ongpin, through Alphaland, had expressed interest to invest in the company.

In a disclosure to the Philippine Stock Exchange, Omico said “there have been initial inquiry regarding the possibility of Alphaland group gaining a stake in the mining operation of the company and/or in the ownership of the company itself,” confirming The STAR article that came out Monday.

“However, no terms or conditions have ever been discussed,” Omico added.

Omico president and chief executive officer Tommy Tia said Alphaland, a joint venture between Ongpin’s group and British fund Ashmore UK Holdings, is just one of several companies that signified interest to acquire a majority stake in or partner with Omico.

Tia said he was open to selling out of the company at the right price. “If there’s a good offer, then why not,” he said.

Omico,which has an ongoing gold exploration project in Itogon, Benguet, closed unchanged yesterday at P0.013 each share after steadily rising for several days amid speculation it will be bought.

After selling out of Philex Mining Corp., Ongpin’s group acquired Atok Big Wedge Co. Inc. to serve as the group’s corporate vehicle for its oil exploration and mining businesses. 

At present, Atok has gold mining interest through subsidiary Atok Gold Mining Co. Inc. which controls a mine near Baguio City with a projected startup volume of 50 tons to 75 tons per day.

Omico has allocated P50 million out of the proceeds from a stock rights offering for the mining exploration activities on the Omico-Macawiwili site. This was necessary following the with drawal of Canadian mining firm Ivanhoehilippines Inc. from the jointventure.

The agreement, signed in 2007, called for the initial investment by Ivanhoe of up to $5.45 million in the exploration of the Itogon mine.

Omico holds a mining agreement with the Macawiwili Gold Mining & Development Co.to operate and mine on the 119 claim blocks owned by MGMDC. The mining claims collectively cover an area of 837 hectares. 

The company’s previous mining agreement with MGMDC was renewed for another 25 years on January 10, 2021.

The mine site, which lies within the Baguio gold district, is prospective for both low sulfidation epithermal vein gold mineralization.

Omico has assigned its senior geologist to prepare a two-year exploration program for the Omico-Mac awiwili project.

Aside from the Omico-Macawiwili mining project, Omico is scouting or negotiating for other mining claims for acquisition eithr throughouright purchase, share-for-property swap or share- for-share swap arrangement with the claim owners.

Omico has several prospective mining claims under evaluation and it is expected that definite agreements will be finalized.

Omico nearly doubled its net income last year to P25.62 million from only P13.72 million in 2008. Revenues grew 28 percent to P85.37 million, mainly coming from the sale of housing units in the company’s Sta. Rosa Homes project in Nueva Ecija and assigned share of condominium units in a joint venture project located in Tagaytay City.

The company secured in April this year an MPSA from the Department of Environment and Natural Resources, allowing it to jumpstart the exploration and development of the mine site in Itogon.

Omico is licensed to operate, prospect, mine and deal with all kinds of ores, metals and minerals. It is also engaged in property investment and development of low-cost subdivision housing units.