MRC Allied in talks with Sydney-based firm for Surigao gold-copper mine project

MANILA, Philippines - MRC Allied Industries Inc., a holding firm owned by a group led by businessman Benjamin Bitanga, is in talks with a Sydney-based company for the development of a 3,718.41-hectare gold and copper mine in Surigao del Sur.

 In a disclosure to the Philippine Stock Exchange yesterday, MRC said it received a firm proposal from the Australian firm to form a joint venture firm with an initial value of $200 million. MRC, through unit MRC Surigao Mines Inc., will take a controlling stake in the new company.

The new firm, which will have the Surigao property as its primary asset, will be listed on the Australian Stock Exchange, based on the proposal submitted by the Australian company.

 “We are currently in the process of finalizing the terms of our agreement on the matter, rest assured however, that we will keep your office updated as soon as we have more conclusive information to disclose,” MRC said.

In January, MRC signed a mining operations agreement for the mine in the municipality of Marihatag in Mindanao for about P310 million.

The group has also taken over a mining claim covering 7,995 hectares at Kiblawan and Columbio, Sultan Kudarat.

The Kiblawan mine, acquired from Alberto Mining, is adjacent to the $5.2 billion Tampakan copper-gold project.

MRC earlier said it was planning to raise $50 million from a private placement with Europe-based investors to fund exploration activities in Mindanao.