Investment holding firm Premiere Horizon Alliance Corp. (PHA) has cemented a deal to take over two companies with limestone mining rights in southern Palawan, taking the first step to enter the cement production business.
Calling this transaction a “reverse takeover,” the Philippine Stock Exchange suspended trading on shares of PHA for an indefinite period starting Wednesday pending the disclosure of more information.
The board of PHA approved the conversion of its advances into subsidiary Redstone Construction and Development Corp. (RCDC) shares, allowing the latter to own up to 100 percent of Pyramid Hill Mining Industrial Corp. and Palawan Star Mining Ventures Inc., the company disclosed to the Philippine Stock Exchange on Wednesday.
RCDC acquired 98.88 percent of Pyramid Hill Mining and 98.55 percent of Palawan Star Mining in July. This was through the conversion of its advances to equity amounting to P220 million in Pyramid Hill Mining and P170 million in Palawan Star Mining.
A reverse takeover refers to a transaction whereby a privately held company buys enough shares to control a publicly traded company.
It was earlier disclosed that Pyramid Hill Mining and Palawan Star Mining hold mineral production sharing agreements (MPSAs) covering about 10,384 hectares.
These contain “probable commercial quality limestone deposits located in the mineralized area of southern Palawan.”
PHA plans to fund the precommercial development of a “sustainable and integrative ecosystem of environmentally conducive businesses.”
The precommercial development cost is estimated at about P500 million, including the generation of limestone resource identification and validation reports, preparation of project feasibility studies, environmental protection programs, and inclusive community development plans and programs, securing of government regulatory permits and licenses, and other relevant development project components.