The Philippine Stock Exchange (PSE) has approved the P262 million stock rights offering of mining firm Omico Corp.
In a circular to member-brokers, the PSE said Omico is offering a total of 26.26 billion common shares at one centavo per share. Each shareholder is entitled to buy one common share for every three shares held as of a proposed record date of Aug. 1. The offering is slated on Aug. 14 to 20.
As a sweetener, Omico is offering one free warrant for every two rights shares at one centavo per share. The warrants are exercisable within 10 trading days prior to end of every three months beginning issue date.
Proceeds from the offering will be used to fund mining exploration activities, acquisition of mining claims, and its real estate development projects.
In the event that the stock rights offering is not fully taken up on the first round, shareholders who have signified interest in applying for additional rights shares above their entitlements will automatically qualify for the “second round” of the rights offering.
To facilitate the rights issue, Omico raised its capital stock to P2 billion.
Omico earlier signed an agreement with Canadian mining firm Ivanhoe Mines Ltd. to conduct mineral exploration activities at the former’s Macawili mine in Benguet.
Ivanhoe, an international mining company with operations focused in the Asia Pacific region, has committed to spend $5.45 million for exploration of the mine site.
Among Ivanhoe’s core assets include the Oyu Tolgoi copper and gold project, one of the world’s largest copper deposits; the Nariin Sukhait coal project in southern Mongolia; and other mineral rights it holds or controls in Mongolia, where additional coal, copper and gold discoveries are being evaluated.
Omico last year forged a joint venture with Robinsons Homes Inc., for the development of the former’s 9,372-square-meter property in Tagaytay into a high density residential subdivision consisting of five-story residential condominium buildings.
Robinsons Homes is the developer of the project while Omico is the landowner. Robinsons Homes is the housing development division of Robinsons Land Corp., the property arm of the Gokongwei group of companies.
Omico is licensed to operate, prospect mine and deal with ores, metals and minerals such as gold, silver, copper, lead, zinc, brass, iron, steel, limestone and their by-products.
In 1993, a massive landslide halted the company’s mining operations, resulting in the cessation of all its exploration activities and diversification into property and investment holding activities.