MANILA, Philippines - The Securities and Exchange Commission has approved the increase in the authorized capital of Apex Mining Co. Inc. from P800 million to P2.8 billion.
The new capitalization consists of 2.8 billion common shares divided into 1.68 billion class A shares and 1.12 billion class B shares with a par value of P1. Of the P2-billion increase, P560.93 million has been fully subscribed and paid for.
Also approved was the issuance by Apex of 341.13 million A shares in favor of Mapua and 219.8 million B shares at an issue value of P370 apiece in favor of Mindanao Gold as a result of the debt-to-equity conversion. The shares will eventually be listed on the exchange.
In exchange, Teresa Crew Gold Philippines will assign all its interests to Apex and extinguish receivables from the listed company, amounting to P1.25 billion. This transaction would reduce Apex’s intercompany loans to P766 million from P2.9 billion
Apex earlier found high-grade gold in its existing mining area at Compostela Valley in Davao.
The company is aiming to produce 25,000 ounces of gold this year. In the first half of the year, it had beefed up its output by 41.4 percent to 12,142 ounces.
Apex has two 25-year mineral production sharing agreements with the government, including the 1,558.5-hectare and 679-hectare sites in barangays Teresa and Masara in Maco, Compostela Valley.
Mindanao Gold Ltd., a Malaysian company, has acquired early this year Canadian mining firm Crew Gold Corp.’s 28 percent stake in Apex.
Apex has been capital deficient in the past years, incurring a deficiency of P469 million in the first nine months of the year as against P425 million as of end-2008.