Omico sets aside P95-M budget for mining claims

Listed mining and property firm Omico Corp. is setting aside P95 million for the acquisition of more mining claims and exploration activities.

In a filing with the Securities and Exchange Commission, Omico said it is on the lookout for other mining claims for acquisition either through outright purchase, share-for-property swap or share-for-share swap arrangement with the claim owners.

Among the mining claims being considered by the company are located in Tawi-Tawi (for nickel), Zamboanga City (gold), Oriental Mindoro (gold), and Lanao del Sur (gold and copper).

Omico said it expects to sign definitive agreements with the claim owners up to 2009.

Funding will come from the company’s planned stock rights and warrants offering estimated to raise around P387.3 million. 

Omico is offering a total of 26.26 billion common shares at P0.01 per share. Stockholders are entitled to buy one common share for every three shares held as of record date of August 1.

The offering is slated on August 14 to 20, 2007.

As a sweetener, Omico is offering one free warrant for every two rights shares at a price of P0.01 per share.

The warrants are exercisable within 10 trading days prior to the end of every three months beginning issue date. 

Bulk of the proceeds from the offering, at about P200 million; has been earmarked for the company’s real estate development projects which include Sta. Rosa Homes in Nueva Ecija, a 14.8 hectare residential project estimated to cost P395.6 million; and a low-cost housing subdivision in Baguio estimated to cost P222.5 million.

Omico is eyeing P472 million in sales and P76.4 million in gains from the Sta. Rosa Homes project when completed.

The company has already received buyers reservation payments on the sale of 102 units – 61 units through Pag-IBIG housing loan and 41 units through in-house financing. The total sales contract amount of the 102 units is about P42.7 million.

For the Baguio project, Omico is looking at a net income of P53.1 million on sales of P275.6 million.

Another real estate development project of the company is a residential subdivision in joint venture with Robinsons Homes Inc. The project, which will rise on a 9,372 square-meter property, involves the development of five-storey residential condominium buildings.