Nihao raising P108 million to fund expansion
- Zinnia B. Dela Peña () - December 31, 2010 - 12:00am

MANILA, Philippines - Nihao Mineral Resources International Inc. is raising P108 million through a private placement of shares to fund its expansion.

In a disclosure to the Philippine Stock Exchange yesterday, Nihao said its board approved the issuance of 80 million shares via private placement to its president, Jerry Angping, at P1.35 each share.

As of end-October this year, Angping held a 5.7-percent stake in Nihao, consisting of 34.1 million directly owned shares and 94,745 indirect shares.

The company will use the proceeds from the issuance to fund the acquisition of mining tenements and mining rights, together with incidental expenses for due diligence and research and development.

The private placement, however, is still subject to the regulatory approvals.

In order to provide shareholders equal opportunity to subscribe to new share issuances of the company, the board likewise approved a stock rights offering at a ratio of two shares for every five shares held by a qualified stockholder. The shares will be sold at the par value of P1.

Nihao shares closed 6.6 percent higher yesterday at P3.15 each.

The company is aiming to become a leading nickel mining and processing company in the country by building up its operating capability, entering into strategic alliances and joint ventures, establishing a strong base of Chinese clients, and pursuing strategic acquisitions.

The group’s mining claims and small-scale mining claims cover a total area of approximately 20,841 hectares.

Its recent acquisition of a 30-percent stake in Oriental Vision Mining Philippines Corp. (ORVI) has prompted the study of outsourcing mine development and operations to ORVI.

Nihao has started discussions with ORVI management on the possibility of assigning the operating rights of its properties to ORVI and entering into a profit-sharing agreement, a royalty agreement, or a combination of the two.

The company is also planning to build a processing plant for nickel ore through prospective joint venture arrangements, thereby adding value to its raw nickel ore product and boosting profit margins.

ANGPING COMPANY JERRY ANGPING MILLION MINING NIHAO NIHAO MINERAL RESOURCES INTERNATIONAL INC ORIENTAL VISION MINING PHILIPPINES CORP ORVI PHILIPPINE STOCK EXCHANGE SHARES
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