NICKEL producer Marcventures Holdings is merging with Asia Pilot Mining Philippines Corp and BrightGreen Resources Holdings in a deal valued at about US$22.1 million. Marcventures will remain as the surviving entity and operator.
Marcventures will issue 1.125 billion shares at par value of P1 per share, 675 million in favour of Asia Pilot and the remaining 450 million to BrightGreen.
Asia Pilot owns Alumina Mining Philippines and Bauxite Resources, which mine bauxite ore. Alumina Mining operates a 6694 hectare tenement at Motiong and Paranas in Samar province while Bauxite Resources has 5435 hectares of mining areas near the towns of Gandara, San Jorge, San Jose de Buan and Matuginao also in Samar.
Marcventures expects the merger to grow its business, diversify its products and expand its source of income. The company notes that bauxite has been more stable in prices compared to other commodities, even during the slump of metal prices.
BrightGreen Resources Holdings owns BrightGreen Resources Corp (BRC) that mines approximately 4860 hectares at Carrascal and Cantilan, in Surigao del Sur. These tenements are adjacent to the operations of Marcventures’ wholly-owned subsidiary Marcventures Mining and Development Corp (MMDC). This company is engaged in mineral production within 4799 hectares at Cantilan.
Marcventures says its intention in acquiring BrightGreen is to gain control of BRC in order to increase its nickel reserves to facilitate a possible venture into nickel processing fed by both mining operations.
MMDC’s main product for the past three years has been nickel ore. It has identified nickel ore as the primary mineral that will be extracted and sold to third parties due to the abundance and favorable characteristics of nickel within the mineral property. This product is direct shipped to China.
Meantime, Marcventures Mining and Development Corp has appointed Yulo Perez as its new president and chief executive, replacing Arsenio Sebial who retired on September 30. Yulo Perez was formerly president and COO of Silangan Mindanao Mining Company, and has 37 years of experience managing mining operations in the Philippines and abroad, including 11 years with PT INCO Indonesia, now called PT Vale Indonesia.