Nihao sells 150-M shares to Macquarie Bank

MANILA, Philippines - Nihao Mineral Resources International Inc. said it has approved an agreement to sell up to 150 million shares to Macquarie Bank Ltd. for as much as $30 million.

In a disclosure to the stock exchange yesterday, Nihao said Macquarie would invest between $25 million and $30 million in the local mining firm via a private placement. The shares, which have a per value of P1, will come from Nihao’s authorized but unissued capital stock.

The purchase of the newly-issued shares will be done in tranches over a period of one year from the execution of the agreement, Nihao said.

Nihao’s share price has more than doubled since the start of the year. From only P4.73 on Jan. 2, 2012, Nihao has hit new multiple highs, finishing at P11.58 yesterday or an increase of 8.8 percent over Friday’s close of P10.64.

The company, together with AGP Industrial Corp. and global commodity trading giant Glencore International AG, have formalized their joint venture with the establishment of GNA Resources International Ltd. which will be governed by the laws of Hong Kong.

The joint venture firm was formed to investigate, identify, acquire, develop and operate mines in the Philippines, with the possibility of expanding into other regions as well such as Indonesia.

Nihao and AGP will take charge of mining, contracting and developing the mines in the country while Glencore will contribute its expertise in marketing nickel ores in the world market using its network of various institutions overseas.

In the first nine months ending September 2011, Nihao reported a more than 10-fold increase in net profit to P23.98 million on successful shipments of lateritic nickel ore to China.

Its unit Oriental Vision completed eight shipments from May to August 2011 for a combined 424,736 tons of limonite and saprolite ore from its Palhi nickel mine in Dinagat Island.