Apex gets $6M funding from Razon’s Monte Oro
Listed mining firm Apex Mining Co. Inc. said it has closed a $6-million investment deal with Monte Oro Resources and Energy Inc., a private company whose principal stockholder is port tycoon Enrique K. Razon, Jr.
In a disclosure to the Philippine Stock Exchange on Friday, Apex said it would use the proceeds for capital expenditures for its mine and mill and start the drilling program on its copper-gold tenement.
Apex holds a mineral production sharing agreement, or MPSA, for a copper-gold deposit located at Maco, Compostela Valley, where the company mines an average of 700 tons of ore a day.
Apex said that for $6 million, Monte Oro subscribed to 73.34 million primary class “A” shares of Apex. That was equivalent to about 5 percent of the total outstanding capital stock of the company, Apex said.
Monte Oro is engaged in mining and oil and gas exploration in the Philippines. Monte Oro’s principals have a proven investment track record in oil and gas exploration, port management, power transmission, waste management, gaming, property development and many other endeavors, Apex said.
“This investment by Monte Oro is a solid affirmation of Apex’s commitment to develop its mineral resources under the MPSA tenements. We are happy to have Monte Oro on board as a minority partner. We will continue to keep the market informed of developments in resource assessments, mine and mill expansion and exploration drill results over the next few months,” Apex chairman Colin Patterson said in the company’s disclosure.
Article continues after this advertisementMonte Oro president Walter Brown said: “We have the utmost confidence in Apex’s management team and will continue supporting their production and exploration expansion programs. We look forward to being part of Apex’s growth.”
In the first half of 2011, Apex reported a net income of P53.4 million compared with a net loss of P183.2 million in the same period in 2010. Sales rose to P952.6 million in the first six months from P662.6 million a year ago due to higher gold prices and bigger volume sold.
