Nihao, Nickel Asia ink deal on Isabela project
NIHAO Mineral Resources International Inc. on Sunday said it had made a deal with Nickel Asia Corp. that would allow the latter to acquire fully the Isabela project for P720 million.
The prospective seller said in a regulatory filing that, as part of the agreement, Nickel Asia would invest in Nihao, and that Nihao would continue to share 20 percent of profits from the project in Dinapigue, Isabela.
Nihao is the operator of and general contractor at the Isabela project, where it mines nickel saprolite and limonite intended for direct export. Based on the agreement, Nihao will convert such status into a one-fifth share of profit from Isabela.
The transaction, which still needs the approval of the boards of both parties, will give Nickel Asia at least the controlling stake in or even full ownership of Geogen Corp., which holds the mineral rights related to the Isabela project.
The project covers an area of about 2,400 hectares, which is covered by a mineral production sharing agreement with the government.
Also, the deal entitles Nickel Asia to acquire a stake in Nihao equivalent to at least 10 percent from a group of existing shareholders at P4 per share.
Further, Nihao is expected to grant Nickel Asia “exclusive preference and priority to explore, operate and develop” the former’s other mining assets.
These include Mina Tierra Gracia Inc. with its 5,081 hectares of mining claim in Zambales, Bountiful Geomines Inc. with 1,944 hectares in Misamis Oriental, and Masbate 13 Philippines Inc. with 4,136 hectares in Masbate.
