Defensor named Nihao chairman

Former Presidential Chief of Staff Michael Defensor has returned to the private sector with his appointment as chairman of listed mining firm Nihao Mineral Resources International Inc.

Defensor, who failed to secure enough votes to clinch a slot in the 2007 Senate race, replaced businessman-stockbroker Jerry Angping who was relegated to the position of treasurer and compliance officer of Nihao, formerly known as Magnum Holdings Inc.

Under the election code, losing candidates cannot be appointed to government posts within a year.

Defensor is also a former Secretary of the Department of Environment and Natural Resources and Quezon City congressman.

Aside from the appointment of Defensor, Nihao’s board also approved the engagement of AB Capital & Investment Corp. as underwriter for its planned 5:1 stock rights offering to fund its development programs.

The offering involves 500 million to 700 million shares at P1 par value which would come from the increase in the company’s authorized capital stock.

Defensor, a staunch supporter of President Arroyo, is expected to contribute to the future growth of Nihao which has been actively undertaking mineral exploration activities.

Nihao currently holds exploration interest in the provinces of Zambales, Misamis Oriental and Aklan.

The company has rights to explore over 6,800 hectares in Botolan, located in one of the country’s top five nickel-rich regions.

It has also signed an off-take and joint cooperation agreement with BHP Billiton’s Philippine unit QNI.

BHP Billiton is the world’s largest diversified resources company with a market capitalization of about $225 billion.

Under the agreement, Nihao will conduct a preliminary exploration and drilling program on its property and QNI Philippines will provide technical expertise and advice. The agreement also contains the commercial terms for a off-take agreement between Nihao and BHP Billiton’s Yabulu nickel refinery in Queensland, Australia.

The Yabulu refinery is one of the world’s major nickel processing facilities.

Nihao earlier said it was looking to acquire two or three more nickel and copper prospective tenements in Mindanao.

Nihao is initially targeting to acquire mining rights covering 7,103 hectares of nickel property located in Botolan and Iba in Zambales. This is, however, subject to a due diligence and valuation of the Botolan mining rights.