MANILA, Philippines - Shareholders of Geograce Resources Philippines Inc., a listed mining company controlled by businessman Jerry Angping, approved a plan to undertake a quasi-reorganization aimed at wiping out deficit amounting to P2.4 billion.
The quasi-reorganization will be made through the reduction of the par value of the company’s shares from P1 to P0.30, resulting in an additional paid-in capital (APIC) of P1.78 billion and receivables of P666.69 million.
According to Geograce, the total expected APIC of P2.45 billion will then be used to wipe out the accumulated deficit which included losses incurred in previous years prior to its conversion from a real estate holding company to a mining company.
The company earlier raised close to P1 billion through the issuance of new shares to private investors.
Proceeds from the private placement would be used to fund the exercise by the company of its options over the Masbate mining claims.
Geograce tapped Vale Exploration Philippines Inc., an affiliate of Vale S.A., considered the world’s largest producer of iron ore, as partner for the exploration activities in Masbate.
The Masbate claims cover an area of 84,046 hectares.
Geograce is primarily engaged in the exploration and development of mineral resources in the Philippines with particular focus on gold and nickel mining activities located in Zambales, Palawan and Bukidnon.