MANILA, Philippines - Nihao Mineral Resources International Inc. is going ahead with its planned P500-million stock rights offering in October this year.
In a disclosure to the Philippine Stock Exchange, Nihao said the offering, which
involves 500 million shares, will run from Oct. 19-23 while listing has been tentatively set on Dec. 11.
Shareholders can subscribe up to five shares for every one share held as of Oct. 9.
AB Capital & Investments Corp. is the lead underwriter for the rights issue.
Net proceeds from the offering, amounting to P483.78 million, will be used to fund the exploration, project development and working capital of the company’s Botolan and Manticao projects, and repay 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 mining claims located in the provinces of Zambales, Misamis Oriental, North Cotobato and Antique.
The rights offering was originally set for March this year but had been postponed by the company pending completion of negotiations with a prospective investor.
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 engaged in mining exploration and small-scale mining activities.
Nihao is still in its development stage and has not yet started its normal commercial and principal operation. – Zinnia dela Peña