PREMIERE Horizon Alliance Corp. (PHA) is taking over two mining companies, marking its entry into limestone exploration.
In a disclosure to the stock exchange on Wednesday, the listed holding firm said its board of directors has approved the conversion of its advances into infrastructure subsidiary, Redstone Construction and Development Corp. (RCDC).
This will allow RCDC to own up to 100% of Pyramid Hill Mining Industrial Corporation (PHMIC) and Palawan Star Mining Ventures, Inc. (PSMVI) which hold mineral production sharing agreements (MPSAs) covering around 10,384 hectares.
The company last March announced its investment in PHMIC and PSMVI, noting that their MPSAs contain “probable commercial quality limestone deposits located in the mineralized area of Southern Palawan.”
PHA said that RCDC has already acquired 98.88% of PHMIC and 98.55% of PSMVI as of July 11, through conversion of its advances to equity amounting to P220 million and P170 million, respectively.
With its investment in the two companies, PHA will be funding the pre-commercial development of businesses including cement production, agricultural lime production, and bio-mass plantation projects.
“The company envisions that the targeted businesses will greatly assist the country’s sustainability and inclusivity objectives in general, and the province of Palawan in particular, specifically in the areas of infrastructure, renewable energy and food security,” PHA said in an earlier disclosure.
The pre-commercial development is estimated to cost up to P500 million, which will cover the generation of limestone resource identification and validation reports, preparation of project feasibility studies, environmental protection programs, and inclusive community development plans and programs. It will also cover the cost for securing government regulatory permits and licenses.
The Philippine Stock Exchange (PSE) has suspended trading of PHA’s shares on Wednesday morning following the disclosure, until such time that the company convey more details about the deal.
“After a careful review of the disclosure submitted by the Company, the Exchange deems that the above-mentioned transaction is covered by the Disclosure for Substantial Acquisitions and Reverse Takeovers of the Disclosure Rules,” the PSE said in a notice posted to its website.
PHA’s market capitalization stood at P736.48 million with a share price of 37 centavos each as of Tuesday’s session.
The company recorded a net loss attributable to the parent of P47.8 million in the first half of 2018, the same level of attributable loss it posted in the same period a year ago. Gross revenues fell by 26% to P254 million during the January to June period. — Arra B. Francia