MRC sells entire mining assets
Publicly traded holding company MRC Allied, Inc. has entered into a memorandum of understanding to sell all of its copper and gold exploration projects to mining industry veteran Salvador B. Zamora II.
In a statement to the stock market on Thursday, the MRC said that upon signing the deal, Zamora was to pay 1.5 billion pesos for the projects’ mining rights. Of this amount, 750 million pesos are payable upon signing the agreement while the balance will be 50% of operating income up to 750 million pesos.
MRC’s mining assets are: the 7,559.1 hectare Kibalawan copper-gold project located in Davao del Sur and Columbia, Sultan Kudarat; the 3,759.3 hectare Marihatag copper-gold project located in Surigao del Sur; the 593.2 hectare Paquibato copper-gold project located in the city of Davao; and the 4,860 hectare Boston-Cateel copper-gold project located in Davao Oriental.
According to the agreement, if the buyer decides to sell the mining assets, the seller will receive 50% of the proceeds up to 750 million pesos.
MRC said the sale of mineral rights will serve as additional income for the company. It will also allow the company “to acquire other business entities to pursue its ambitious goal of transforming a real estate business into a holding company.”
“The effect on the company’s operations and financial condition will depend on the success of the sale of the company’s mineral rights,” he added.
MRC also said the sale of the mining rights would “strengthen” the holding company while diversifying its portfolio to include “renewable energy and other potentially viable projects” that will add value to the company and its shareholders.
In the disclosure, MRC described Mr. Zamora as having been in the mining industry since 1970 establishing Nickel Asia Corp., where he served as chairman and chief executive officer from 2006 to 2009.
He also managed the operating sites of Nickel Asia, namely: Hinatuan Mining Corp., Taganito Mining Corp. and Cagdianao Mining Corp.
On Thursday, MRC shares on the stock market jumped 7.69% or P0.02 to close at P0.28 apiece.