SEC okays Omico capital hike

The Securities and Exchange Commission (SEC) has approved the increase in capital stock of listed mining and property firm Omico Corp. from P1 billion to P2 billion.

The new capitalization consists of 200 billion shares with a par value of one centavo per share. Out of the P1-billion increase in capital, P262.61 million has been subscribed and paid.

The additional capital will most likely be used by Omico for acquisition of mining tenements and real estate development projects. Omico is allotting P95 million for acquisition of more mining claims and its ongoing exploration activities.

The acquisition will be done either through outright purchase, share-for-property swap or share-for-share swap arrangement with the claimowners.

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 expects to sign definitive agreements with the claimowners until 2009.  

The company recently raised P387 million from a stock rights and warrants offering of 26.26 billion common shares at one centavo per share.

Bulk of the proceeds from the offering, or 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 subsidivision in joint venture with Robinsons Homes Inc. The project, which  will rise on a 9,372-square meter property, involves the development of a five-story residential condominium building.