Nickel Asia to buy 10% of NiHao, Isabela mining project

Listed mining firm Nickel Asia Corp. is buying into NiHAO Mineral Resources International Inc., as well as acquiring the Isabela project the latter operates.

 

In a disclosure to the Philippine Stock Exchange, NiHAO said Nickel Asia will acquire at least 10 percent of the company from existing and controlling shareholders at a purchase price of P4 apiece.

 

Nickel Asia will also acquire Isabela project–whose mining rights is owned by Geogen Corp. but is operated by NiHAO–for P720 million.

 

"Nickel Asia Corporation and NiHao Mineral Resources International Inc. have decided to enter into a transaction, pending the completion of due diligence by NAC and the authorizations from the respective Board of Directors of the parties," the disclosure read.

 

The mineral rights of Geogen covers a mineral property with an aggregate area of 2,391.4081 hectares in Dinapigue, Isabela.

 

NiHAO, as the operator and contractor of the project, mines nickel saprolite and limonite ores for direct shipment and export from the Philippines.

 

But after the transaction, NiHao said it will turnover operations of the project to Nickel Asia but will maintain its economic interest over the mine, translating to 20 percent share in net profits.

 

Apart from the the acquisitions, NiHAO said it will grant Nickel Asia exclusive preference and priority to explore, operate and develop three of its mining claims.

 

These include Mina Tierra Gracia Inc. with 5,081.6408 hectares of mineral property in Bototal and Iba, Zambales; Bountiful Geomines Inc. with 1,944 hectares located in Opol and Manticao, Misamis Oriental; and Masbate 13 Philippines Inc. with 4,136.7538 hectares in Milagros and Mandaon, Masbate.

 

If Nickel Asia decides to pursue development in the properties, NiHAO will be granted the same terms as that of the Isabela project.

 

NiHAO said the parties involved in the transactions "shall execute definitive and implementing agreements...upon completion of corresponding conditions precedent required for the said transaction." — RSJ, GMA News