THE top executives of Marcventures Holdings Inc. (MHI) approved a merger with Asia Pilot Mining Philippines Corp. and Brightgreen Resources Holdings Inc., with MHI as the surviving entity.
MHI said it will issue 675 million shares to the shareholders of Asia Pilot and 450 million shares to the shareholders of Brightgreen. Both shares will have a par value of P1 apiece.
Asia Pilot owns Alumina Mining Philippines Inc. and Bauxite Resources Inc.
Alumina holds a mining-area contract with an area of 6,694 hectares in Motiong, San Jose de Buan, and Wright, Samar. Bauxite Resources holds a mining contract with an area of 5,435 hectares in Gandara, San Jose de Buan and also in Wright, Samar.
MHI said the merger will allow it to control the two firms, whose mineral resource each is bauxite ore—the main raw material of aluminum.
“The merger will allow MHI to grow its business, diversify its products and expand its source of income,” the firm said. “Bauxite has been observed to be more stable in prices as compared to other commodities even during the slump of metal prices.”
Brightgreen holds a mining contract covering approximately 4,860 hectares of Carrascal and Cantilan, Surigao del Sur.
The mining tenement is contiguous to the mining tenement of MHI unit Marcventures Mining and Development Corp.
MHI said the merger with Brightgreen aims to increase its nickel reserves of owned nickel mines as it wants to venture into nickel processing. The merger will requires shareholders’ approval.
For the first half of the year ending June, MHI said it posted a net income of P24.14 million, a turnaround from last year’s P192.6 million in losses.
Total revenues grew more than half to P908.6 million for the period, from last year’s P575.6 million, as its units shipped out 17 vessels of nickel ore of which 12.5 vessels of saprolite and 4.5 vessels of limonite. In the same period last year, it shipped out 19 vessels of nickel ore of which 18 vessels are limonite and only one vessel of saprolite.
The increase in revenue was due to higher volume of saprolite nickel ore shipped during the period, MHI said.