Nickel Asia Corp., the country’s biggest nickel producer, sealed an agreement with shareholder Sumitomo Metal Mining Co. Ltd., detailing the Japanese company’s participation in its gold exploration subsidiary, Cordillera Exploration Co. Inc. (Cexci).

In a filing to the Philippine Stock Exchange on Wednesday, Nickel Asia said Sumitomo will invest $1.5 million in Cexci in return for a 25-percent interest alongside an option to invest another $2.8 million and increase its interest by another 15 percent.

“The funds will be used for the exploration work on Cexci’s properties,” Nickel Asia said.

In line with its diversification goals, Nickel Asia purchased Cexci in November 2010 from Anglo American Exploration Philippines, following the latter’s decision to exit the Philippines.

Cexci has four properties in the central Cordillera in Northern Luzon that are prospective for the exploration of gold and copper.

The Manmanok property in the province of Apayao has been subjected to previous geological work by the previous owner prior to Anglo, Newmont Philippines, and by Anglo as well, Nickel Asia noted.

Nickel Asia shares closed flat at P22.20 each on Wednesday’s close.

(Miguel R. Camus)