Oriental, Platinum forge deal on Palawan mine

MANILA, Philippines - Oriental Peninsula Resources Group (ORE) subsi-diary Citinickel Mines and Development Corp. and the Atayde-led Platinum Group Metals Corp. (PGMC) have entered into a compromise agreement, ending a long drawn-out battle over the metal-rich Pulot and Toronto properties in Palawan.

The compromise deal, which was submitted for approval to the Regional Trial Court of Puerto Princesa, calls for PGMC’s turnover of the two mine sites to Citinickel, which is 94 percent owned by the listed mining and energy holding firm in exchange for 30 million ORE shares.

The shares are valued at P90.6 million based on yesterday’s close of P3.02 per share.

PGMC committed not to dispose the 10 million ORE shares in the open market not earlier than Dec. 8, except with written consent of Citinickel.

The remaining 20 million ORE shares may be disposed by PGMC as it may deem necessary at any time after the filing of the compromise agreement. Proceeds shall be used to settle all outstanding obligations and liabilities of PGMC in its Palawan operations including royalty obligations, unpaid salaries and wages due to creditors and contractors.

Under the agreement, PGMC shall acknowledge that Citinickel is the holder of the 25-year mineral production sharing agreement (MPSA) covering an aggregate 2,176 hectares of land. Of the total area, 1,408 hectares are located in Espanola while 768 are in Narra.

PGMC and Citinickel had been at odds for several years now after PGMC’s operating contract was cancelled by Citinickel’s predecessor, Olympic Mines and Development Corp., due to alleged environmental violations.

PGMC has also agreed to refrain from doing any any acts that will prevent Citinickel from operating the mineral property and such other properties or that will disturb the possession of Citinickel over the said properties or which may in any manner interfere with the exercise by Citinickel of its rights under the MPSA.

“Any violation by PGMC of any of the terms and conditions of this agreement shall entitle Citinickel to the immediate issuance ex-parte of a writ of execution to eject or oust PGMC from the mine sites and such other properties, to place Citinickel in possession of said properties and to compel PGMC to transfer to Citinickel ownership of said other properties,” the compromise agreement said.