Capital Gold Pty Ltd., an Australian holding company that finances mining activities, is investing an initial $70 million to support projects of Dizon Copper-Silver Mines and NiHao Mineral Resources International Inc.
Capital Gold director Christopher Louis Abbal de Lavigne told reporters after the signing of agreements with Dizon and NiHao that the foreign company will partner with Dizon to rehabilitate the latter’s tailings dam in Masbate.
The initial capital for the Dizon Zambales Copper Silver Gold Tailings Dam would be $30 million to $50 million.
The project could be productive in about 18 months from the start of rehabilitation work, said George Calder Sim, who is a director of both Capital Gold and Capital Resources.
The greenfield Masbate 13 gold project on Masbate island, De Lavigne said, may require $10 million to $20 million just to complete work up to a bankable feasibility study.
From NiHao, Capital Gold and holding company Capital Resources Plc agreed to acquire up to 75 percent of Masbate 13 Philippines, a subsidiary of NiHao subsidiary, Oregalore Inc., or up to 93.75 percent of Oregalore.
For the initial 40 percent acquisition of Masbate 13 or Oregalore, Nihao shall receive 50 million shares in the Frankfurt-listed company at the current indicative listing value of 0.10 euro per share. In addition, the Frankfurt-listed company will pay to NiHao a cash consideration of $250,000.