ABRA Mining & Industrial Corp has raised up to US$6.3 million from three new investors, thereby completing US$21 million in private placement offerings in the past six months. Funds raised will be used for reopening the Patok Gold Project and for production and marketing of calcic lime, also known as quicklime.
Philippines-based Abra has negotiated the funding from three local companies with each investing P100 million. The three companies are Jubileum Air and Sea Logistics, Andrei Vincent Freight Services Corp and pharmaceutical company B-Phar Inc. The individual deals are of different tranches within a period of three years.
In July 2015, the company raised $15 million in equity from a top up, private placement with Gem Global Yield Fund Inc, an investment group based in Luxembourg.
The company’s vice president of management and services Joel Beloy said the secured equity line was meant to finance the mining projects and provide a robust income cash flow for the company. He said of the funds raised, Abra would use P400 million for calcic lime or quicklime production and marketing, and P600 million for re-opening of the Patok Gold Project.
The Patok operations was started in the early 1970s where a 100 tonne beneficiating mill plant was set-up to capitalize on the high grade gold vein deposit discovered during exploration and bank on the rising price of gold. However, during the 1970s copper was the main attraction and enjoyed the limelight in metal production. This was an eventful period in Philippine history when it ranked fifth in world copper production.
As a result, most of the company’s attention was being diverted to the Capcapo Copper-Gold Project, a porphyry copper-type deposit 5km NNW of the Patok claim.
Patok is in the northeast foothills of the Central Cordillera, 39km by road from the central town of Bangued, capital of Abra. Studies show the Patok area is consistent with deposits in the Baguio Gold District, only 130km to the southeast, where several big and medium mining companies have been operating.
Historically, in times of great economic uncertainties gold has been a safe investment haven and a hedge. For this reason, Abra strongly believes in the commercial viability of reopening the Patok project, particularly as the gold price springs back to life once more and gold again becomes a redeeming factor in unstable world economies.