Platinum Group Metals considers backdoor listing on PSE

Nickel and iron miner Platinum Group Metals Corp. is eyeing a backdoor listing on the Philippine Stock Exchange (PSE), through Southeast Asia Cement Holdings Inc. (Seacem), and may conduct a follow-on offer to take advantage of rising nickel prices.

In a disclosure to the PSE Thursday, Seacem which trades under the ticker “CMT,” said its board of directors had approved the change in corporate name to Global Ferronickel Holdings. Inc. It will also increase its capital and issue shares to the stockholders of Platinum Group. This is in exchange for the sale and transfer to Seacem of 99 percent of the outstanding shares of Platinum Group.

The transaction is still subject to terms, conditions and other considerations as may be agreed upon by the corporation and the stockholders of Platinum Group, the disclosure showed.

The board approved an increase of P10 billion in the authorized capital of Seacem, from P2.55 billion. This will bring total authorized capital to P12.55 billion divided into 35.87 billion common shares with a par value of P0.35 apiece.

The company later plans to conduct a follow-on offering to the public of available shares arising from the proposed increase in the authorized capital stock, subject to the Securities and Exchange Commission’s approval.

The PSE said the corporate actions and transactions would be covered by the rules on backdoor listing. Trading on Seacem’s shares yesterday was halted from 9 a.m. to 10 a.m. to allow investors to digest this disclosure.

Seacem, now a dormant holding firm, was earlier sold by the same shareholder group that owns 8990 Holdings to the Platinum Group.

Platinum Group, led by Joseph Sy, is a mining firm that holds pioneer status from the Philippine Board of Investments for locating its operation to  a less developed part of Cagdianao, Claver in Surigao Del Norte. PGMC operates a 4,300-hectare mine site in Surigao—almost four times the project site of peer Marcventures Holdings. Its mine site is right beside that of Nickel Asia Corp.

Shares of both Marcventures and Nickel Asia nearly tripled after Indonesia banned the export of unprocessed mineral ore early this year.

In a Sept. 4 research note, local stock brokerage DA Market Securities said that, ahead of a projected nickel supply deficit in 2015, there would likely be a more bullish sentiment on nickel prices.

Also, Sen.r Bam Aquino filed a bill seeking to ban the export of unprocessed mineral ore.

“However … we do not expect a ban on the export of raw ore … to be implemented in the near-term,” DA Market said.