HK firm to invest P700M in Vulcan Mining
MANILA, Philippines - Hong Kong-based China Trend Investments Ltd. has expressed interest in making a P700-million private placement in Vulcan Industrial & Mining Corp.
In a disclosure to the Philippine Stock Exchange, Vulcan said China Trend decided to invest directly in Vulcan rather than optioning its mining assets.
China Trend signed a memorandum of understanding to conduct a 60-day review of Vulcan’s mining projects last Aug. 31. It had a 60-day due diligence period to option the mining projects of Vulcan, which ended on Oct. 31.
China Trend conducted a due diligence on four Vulcan projects, but was unable to complete it due to insufficient information it was given.
“In our evaluation, it would be more prudent for us to invest directly into Vulcan rather than optioning your mining assets. Consequently, our proposal is to make a private placement of up to P700 million, instead of a memorandum of agreement,” said China Trend chairman Chan Wai Keung, in a letter to Vulcan chairman and president Alfredo C. Ramos and executive vice-president Patrick Caoile.
“However, we will pay the $1 million being part of the placement sum upon confirmation of the private placement by both parties,” he added.
China Trend is a Hong Kong-based company, which has expressed interest in making $6 billion in “friendly” investment for infrastructure and other development projects in the Philippines.
Vulcan and its subsidiaries was incorporated in January 1953. It owns three approved mineral prediction sharing agreements, exploration permit applications for 10 mining prospects and operates another two mining projects under operating agreements with third parties.
At present, identified claims of various mines assigned to or located by Vulcan include Marian gold mines in Cordon, Isabela; Dinapique gold project in Isabela; Luz copper project in Sipalay, Negros Occidental; Manlupo copper project in Damutan, Negros Occidental; Panaon gold prospect in Pintuyan, Southern Leyte and Davao gold and copper project in Manay and Taragona.
Subsidiary Vulcan Materials Corp.’s identified claims include Subic gabbro project in Zambales; Palawan Silica Sand in Roxas and San Vicente; Morong concrete aggregates in Bataan; Batangas concrete aggregates; Bolinao cement/limestone project in Pangasinan and comet Dinagat project.
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