Villar group gets 13.33% stake in mining company | Inquirer Business
Close  

Villar group gets 13.33% stake in mining company

Brightens prospects of Agusan nickel project
/ 07:53 PM January 26, 2014

The Villar group has acquired a 13.33-percent interest in Canadian firm Mindoro Resources Ltd., shoring up hopes that the Agata nickel project in Agusan del Norte could start production within this year.

This develops after Prime Resources Holdings Inc. (PRHI), a subsidiary of Prime Asset Ventures Inc., took steps to acquire a 68.42-percent interest in Mindoro Resources’ joint-venture partner in Agata, TVI Resources Development Philippines (TVIRD).

ADVERTISEMENT

“We previously welcomed PRHI to the joint venture as a strong local partner and we are now pleased to also welcome PRHI as a strong shareholder in our company,” Mindoro Resources chief executive Tony Climie said in a statement.

“We believe PRHI’s purchase of Mindoro securities in the market sends a significant message of support for the Agata project and meeting our production objectives in 2014,” Climie added.

FEATURED STORIES

In a statement, PRHI said it had acquired some 39.6 million common shares in Mindoro Resources through a secondary trade at the Australian Securities Exchange for about $849,295 or some P33.6 million.

TVI Pacific Inc., also based in Canada, last December announced that it had executed various definitive agreements with PRHI relating to financing and investment in TVI and its indirectly held Philippine assets, including Mindoro’s Agata and Pan de Azucar projects.

These agreements included PRHI acquiring a 5-percent direct equity interest in TVI and a 68.42-percent direct equity interest in TVIRD, through which TVI holds an option to earn a 60-percent interest in Agata and Pan de Azucar.

According to TVIRD, a feasibility study completed last August suggested that Agata had “a high internal rate of return (IRR) of 187 percent, a payback within the first year of operation, and a post-tax net present value of $37.9 million.”

TVIRD also said that funds received from the issuance of shares to PHRI were expected to be used for working capital and to advance various projects, including a planned direct shipping ore project in Agata.

In 2012, Mindoro entered into joint-venture agreements with TVI to undertake a two-stage development strategy for Agata.

The first stage involves the direct shipment of ores to a buyer or buyers while the second involves the processing of ores on site.

ADVERTISEMENT

Regarding direct shipping, TVIRD has acquired all the property needed for a road network while 90 percent of land needed for a port facility has been acquired as of October 2013.

According to TVI, the planned direct shipment ore project already had an environmental compliance certificate and the company was pursuing permits related to Agata’s environmental protection and enhancement program and the final mine rehabilitation and decommissioning plan.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, economy, News, Prime Resources Holdings Inc., Villar group
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.