Carmen Copper mulls listing of shares abroad

Carmen Copper Corp., a wholly-owned subsidiary of Atlas Consolidated Mining & Development Corp. (ACMDC), is considering listing abroad as it failed to meet the profitability requirement of the Philippine Stock Exchange, according to a top company official.

ACMDC chairman and president Alfredo Ramos said the group is looking to list shares of Carmen Copper either on the Toronto Stock Exchange or London Stock Exchange early next year.

Carmen Copper, which handles ACMDC’s Toledo copper mining operations in the central province of Cebu, did not meet the PSE track record of profitability requirement.

ACMDC earlier agreed to sell a portion of its debt for $7 million, which is convertible into Atlas common shares, to an investment fund called Crescent Asian Special Opportunities Portfolio.

The investment fund, which comprises "a group of international investors whose funds collectively exceed $15 billion," is also expected to inject $33 million into Carmen Copper.

ACMDC said the equity injection into Carmen will come in two tranches: a $5-million convertible bond up front, and a $28-million subscription for new shares upon finalization of a senior debt instrument and off-take agreement for the copper project.

The proceeds from the convertible bond will initially be used to get the water out of the mine in preparation for rehabilitation. The $33-million equity infusion may earn the investors around 34 percent of Carmen Copper, Atlas said.

ACMDC was established through the merger of assets and equities of three Soriano-controlled pre-war mines, the Masbate Consolidated Mining Co., IXL Mining Co. and the Antamok Goldfields Mining Co.

The company is engaged in mineral and metallic mining and exploration that primarily produces copper concentrates and gold with silver and pyrites as major by-products. Its subsidiary, ACMDC Ventures, Inc. (AVI) is 79- percent owned and is engaged in construction and engineering works.

The company’s copper mining operations, which started commercial operations in 1955, are centered in Toledo City, Cebu where two open pit mines, two underground mines and milling complexes (concentrators) are located.

The Cebu copper mine ceased operations in 1994. Activities after the shutdown have been limited to safeguarding and maintaining the property, plant and equipment at the minesite. The Masbate gold mine, meanwhile, was sold to Base Metal Minerals Resources Corp. in 1996.