LISTED holding firm MRC Allied, Inc. has entered into a memorandum of agreement to sell its entire copper and gold exploration projects to mining industry veteran Salvador B. Zamora II.
In a disclosure to the stock exchange on Thursday, MRC said upon signing of the agreement Mr. Zamora is to pay P1.5 billion for the mining rights of the projects. Of the amount, P750 million is payable upon the agreement signing while the balance will be from 50% of the operating revenues up to P750 million.
MRC’s mining assets are: the Kibalawan copper-gold project with an area of 7,559.1 hectares located in Davao del Sur and Columbio, Sultan Kudarat; the Marihatag copper-gold project with an area of 3,759.3 hectares located in Surigao del Sur; the Paquibato copper-gold project with an area of 593.2 hectares located in Davao City; and the Boston-Cateel copper-gold project with an area of 4,860 hectares located in Davao Oriental.
Under the agreement, if the buyer decides to sell the mining assets, the seller will get 50% of the proceeds up to P750 million.
MRC said the sale of the mining rights will serve as additional income for the company. It will also allow the company to “acquire other business entities to continue its aspirational goal of transforming from property business to a holding company.”
“The effect on the operations and financial condition of the company will be subject to the success of the sale of the mining rights of the company,” it added.
MRC also said the sale of the mining rights would “solidify” the holding firm while it diversifies its portfolio to include “renewable energy and other potentially viable projects” that will add value to the company and its stockholders.
In the disclosure, MRC described Mr. Zamora as being in the mining industry since 1970 by establishing Nickel Asia Corp., where he was president and chief executive officer from 2006 to 2009.
He also headed Nickel Asia’s operational sites, namely: Hinatuan Mining Corp., Taganito Mining Corp., and Cagdianao Mining Corp.
On Thursday, shares in MRC at the stock exchange surged by 7.69% or P0.02 to close at P0.28 apiece.
