Nihao eyes P270 million from stock rights offering
- Zinnia B. Dela Peña () - January 2, 2011 - 12:00am

MANILA, Philippines - Nihao Mineral Resources International Inc. is eyeing to raise P270 million through a planned stock rights offering, according to its president Jerry Angping.

Under the plan, shareholders can buy two shares for every five shares held as of a record date yet to be set. The shares will be sold at par, or P1 apiece.

The rights issue is intended to provide shareholders equal opportunity to subscribe to new share issuances.

Nihao is likewise undertaking a private placement of shares to raise P108 million to fund its working capital requirements and expansion. The company will be issuing 80 million shares to Angping at P1.35 each.

The purchase would increase Angping’s holdings in Nihao, which stood at 5.7 percent as of end-October last year, consisting of 34.1 million directly-owned shares and 94,745 indirect shares.

Proceeds from the issuance shall be used to fund the acquisition of mining tenements and mining rights together with incidental expenses for due diligence and research and development.

Nihao 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 RIGHTS SHARES
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