Marcventures shareholders OK capital hike

MANILA, Philippines - Shareholders of Marcventures Holdings Inc. (formerly Ajo.net Holdings) approved the company’s plan to raise its capitalization to as much as P5 billion from P2 billion and increase the par value of the firm’s shares from one centavo to P1.

In addition, the shareholders gave their go-signal for the board to approve subscriptions to the increase in authorized capital stock through the creation of additional common shares, preferred shares and other types of securities and to accept subscriptions from stockholders and third parties to the proposed increase in the form of cash and assets all under such terms and conditions as the board may deem proper.

Its parent firm, Marcventures Mining and Development Corp. (MMDC), was recently granted incentives by the Board of Investments (BOI) for a P474-million investment in a mining project in Surigao del Sur.

MMDC has a mineral production sharing agreement to mine 4,799 hectares in Cantilan, Surigao del Sur for nickel and gold.

The company is aiming to produce 600,000 metric tons of nickel ore in the first year of operations. This is expected to increase to 800,000 MT and 1.2 million MT in the second and third years, respectively.

MMDC has forged an agreement with Japanese firm Hanwa Co. Ltd. for the sole distributorship rights to the nickel generated by the Surigao del Sur venture. Hanwa’s marketing reach extends to various countries, including China, India, Japan, South Korea and the United States.

MMDC, a company led by former Lepanto Consolidated Mining president Ramon Recto, has taken over Ajo.net in April in a share swap deal valued at P1.3 billion. Under the deal, MMDC subscribed to 45 billion shares of Ajonet at the new par value of one centavo.

The deal also involved Ajo.net’s transfer to MMDC of 499 Metro Club certificates including its P17.5 million obligations to Philippine Townships Inc.