Razon-led Monte Oro seals deal to acquire 5% stake in Apex Mining

MANILA, Philippines - Monte Oro Resources & Energy Inc., a privately-held company led by ports king Enrique K. Razon, sealed yesterday a deal to acquire a five-percent stake in listed Apex Mining Co. Inc. for $6 million.

Incorporated in 1970, Apex owns and operates a 700-metric ton per day mine producing gold/silver ore and holds a mineral exploration license for porphyry copper-gold deposit in Maco, Compostela Valley.

Monte Oro subscribed to 73.34 million primary Class A shares of Apex, equivalent to five percent of the total outstanding capital stock of the mining firm.

Apex intends to use proceeds from the share sale to fund capital expenditures for its mine and mill and to start the exploration drilling program of its Maco porphyry copper-gold tenement.

“This investment by Monte Oro is a solid affirmation of Apex’s commitment to develop its mineral resources under their tenements. We are happy to have Monte Oro on board as a minority partner. We will continue to keep the market informed of exciting developments in resource assessments, mine and mill expansion and exploration drill results over the next few months,” Apex chairman Colin Patterson said.

“Monte Oro’s principals have proven investment track records in oil and gas exploration, port management, power transmission, waste management, gaming, property development and many more noteworthy endeavours,” he added.

Monte Oro president Walter Brown, for his part, said: “We have the utmost confidence in Apex’s management team and will continue supporting their production and exploration expansion programs. We look forward to being part of Apex’s growth.”

Monte Oro was organized in 2005 to engage in the business of metals mining and oil and gas production in the country. It is also engaged in infrastructure and real estate development.

Monte Oro has a 30-percent interest in Service Contract 72 covering part of the Recto Bank, about 148 kilometers west of Palawan province. The area could potentially contain 3.4 trillion cubic feet of natural gas.

In September, Apex disclosed it was merging with affiliate Teresa Crew Gold Philippines Inc. to “achieve operational efficiencies” and improve profitability. Apex said it would be the surviving corporation in the merger.