Olongapo SubicBay BatangGapo Newscenter

Wednesday, June 18, 2008

Nihao to raise capital for nickelmines

The proceeds of the capital raising activity will go to the exploration, project development and working capital of its nickel mines in Botolan, Zambales

The Manila Times - McClatchy-Tribune Information Services via COMTEX) -- Nihao Mineral Resources International Inc. will raise funds through a stock rights offering for its mining activities in its nickel tenements, the company told the Philippine Stock Exchange.

In a disclosure, the mining firm said its board approved the sale to eligible investors who are entitled to subscribe five rights shares for every one Nihao share held as of record date yet to be announced.

The proceeds of the capital raising activity will go to the exploration, project development and working capital of its nickel mines in Botolan, Zambales, and Manitcao, Misamis Oriental. The new funds would also be used to pay for the advances made from shareholders.

Since last year, Nihao has been aiming to raise P700 million through stock rights offering to finance potential mining projects in the area in joint venture with four possible strategic Chinese partners.

Banco de Oro Unibank has been tapped as the receiving agent and custodian bank for the stock rights offering.

The company also signed an agreement last year with QNI Philippines Inc., a local unit of mining giant BHP Billiton Ltd., for its preliminary exploration of the 7,102-hectare nickel project in Botolan and Iba, Zambales, with prospects for nickel laterite deposits. BHP Billiton will provide technical expertise and advice.

The accord also contains the commercial terms for the offtake agreement, an option available to BHP Billiton, between Nihao and BHP Billiton's Yabulu nickel refinery in Queensland, Australia, one of the world's major nickel processing facilities. The agreement will take effect once the exploration and drilling program is concluded and would extend for five years. The firm agreed it would deliver 500,000 wet metric tons of nickel ore a year, based on London Metal Exchange prices.

Nihao's affiliate firm Geograce Resources Philippines Inc. meanwhile plans to partner with a South American mining firm that would pour in an estimated $26 million for the copper project within a 60,000-hectare area in Masbate.

The Geograce group also plans to put up nickel smelting and processing plants in Bataan to service the Zambales mines or within Philippine Veterans Investment Development Corp. in Cagayan de Oro that would process the ores from the group's mines in Misamis Oriental. A group of Chinese investors will foot the bill of the 10,000-ton a year plant. The group is also looking into the possibility of mining iron ore and chromite.

Labels: , , , ,


Post a Comment

<< Home


This is a joint private blog of volunteers from Subic Bay. It is being maintained primarily to collate articles that may be of importance to decision making related to the future of Subic Bay and as a source of reference material to construct the history of Subic Bay.

The articles herein posted remains the sole property of original authors and publications which has full credits to the articles.

Disclaimer: Readers should conduct their own research and due diligence before using any article herein posted for whatever intended purpose it may be. This private web log will not be liable for any loss or damage caused by a reader's reliance on information obtained from volunteers of this private blog.

www.subicbay.ph, http://olongapo-subic.com, http://sangunian.com, http://olongapo-ph.com, http://oictv.com, http://brgy-ph.com, http://subicbay-news.com, http://batanggapo.com 16 January 2012