MBMI Resources has entered into an agreement with DMCI Mining Corp for the sale of its interests in three Philippines-incorporated development companies (DevCos) – Narra Nickel Mining and Development Corporation, McArthur Mining, and Tesoro Mining and Development Corporation.
Canadian-listed MBMI held approximately 40% of the shares of each of the DevCos with DMCI and another party effectively holding the remaining interests.
Pursuant to a memorandum of agreement entered into with DMCI, the parties have agreed to a transaction whereby MBMI would divest itself of all ownership of the DevCos, such that DMCI would acquire an effective interest of approximately 84% in the DevCos, with the other shareholder retaining an effective interest of approximately 16%. DMCI agreed to pay US$12,000,000 to MBMI for the purchase of MBMI’s 40% interest.
In June MBMI announced that it had received a downpayment of $750,000 from DMCI which formed part of the agreement. The company has also sold 13 units of heavy equipment to Ivy Michelle Trading and Construction for consideration of PhP9.2 million and the amount has been received in full.
In regards to the ongoing legal action involving MBMI and the DevCos, on June 5 the companies filed a Motion for Reconsideration seeking the reversal of the April 21 decision of the Supreme Court.