Nihao determined to pursue stock rights offering

MANILA, Philippines – Nihao Mineral Resources International Inc. will pursue its planned stock rights offering this year regardless of whether it succeeds in striking an agreement with a prospective investor it is in talks with.

“The company intends to proceed with its offer within the year 2009, notwithstanding the ongoing negotiations with the said investor,” Nihao said in a filing with securities regulators.

Nihao was directed by the Philippine Stock Exchange to conduct its rights offer on July 14, 2009. The company was supposed to hold its rights offering in March this year but decided to postpone it pending completion of negotiations with the potential investor.

An official of Nihao said the revised timetable for the offer is now being finalized.

Based on its registration statement approved by the Securities and Exchange Commission, Nihao will be offering a total of 500 million shares.

AB Capital & Investments Corp. will serve as the lead underwriter for the rights issue.

The company is hoping to raise around P500 million from the offering to fund the exploration, project development and working capital of the Botolan and Manticao projects, and repay its advances from shareholders.

The exploration and project development of the Botolan and Manticao projects covers a period of at least two years.

As of end-December 2008, Nihao had four four mining claims located in the provinces of Zambales, Misamis Oriental, North Cotobato and Antique.

The group is still in its development stage and has not yet started its normal commercial and principal operation.

Nihao is aiming to become a leading nickel mining and processing company in the country by building up its operating capability to explore and develop its mining claims, entering into strategic alliances and joint ventures, establishing a strong base of Chinese clients, and pursuing strategic acquisitions.

The company has six wholly-owned subsidiaries that are engaged in mining exploration and small-scale mining activities.