Benguet Corp unit to hike capital to P2 billion

MANILA, Philippines - Benguet Corp. Nickel Mines Inc. (BNMI), the nickel unit of listed miner Benguet Corp., has obtained the Securities and Exchange Commission’s nod to raise its authorized capital to P2 billion.

In a disclosure to the Philippine Stock Exchange, Benguet said the capital hike was made through the transfer of its mining permit covering the Sta. Cruz nickel mine, valued at P1 billion, to BNMI.

BNMI, formed in 2009 with an initial capital of only P10 million, is eyeing an initial public offering (IPO) of shares this year.

Benguet said the capital hike and the transfer of nickel mine will further strengthen its balance sheet and is consistent with its strategy of extracting value from its various mineral properties.

The Sta. Cruz nickel mine, located in Sta. Cruz, Zambales, consists of 1,406.7 hectares covered by a mineral production sharing agreement.

BNMI shipped last year some 1.3 million tons of ore with grades ranging from 1.8 percent to 2.05 percent nickel through an off-take arrangement.

BNMI is considering the establishment of an intermediate processing facility to improve and maximize the value of its products.  

“Preliminary studies have shown encouraging results and further tests are now being conducted in China,” Benguet said.