Atok-Big Wedge ups capital to P50 million

MANILA, Philippines - Inactive mining firm Atok-Big Wedge Co. Inc., set to be acquired by the group of businessman Roberto V. Ongpin and UK-based investment firm Ashmore Investment Management Ltd., is beefing up its capital stock from P20 million to P50 million.

In a disclosure to the Philippine Stock Exchange yesterday, Atok-Big Wedge said the new capitalization consists of 50 million shares with a par value of P1.

The board of Atok-Big Wedge also approved the firm’s subscription of P15.839 million to the increase in capitalization of Atok Gold Mining Co. Inc. which shall be fully paid in cash.

The Ongpin-Ashmore Group, through Boerstar Corp., is acquiring at least 80 percent of the shell mining firm, equivalent to 48.18 million shares, at par value of P1 or a total of P48.18 million.

An agreement is expected to be signed soon between Atok-Big Wedge and the Ongpin-Ashmore Group.

The acquisition is part of the Ongpin camp strategy to build up its investment portfolio which now includes Philex Mining Corp., PhilWeb Corp. and ISM Communications Corp.

Upon completion of the acquisition, Boerstar intends to expand Atok-Big Wedge’s mining assets as well as invest in oil and gas resources.

Atok-Big Wedge is a holding company primarily engaged in mining, with gold as its major product and silver as a by-product. Due to prolonged adverse economic conditions compounded by problems faced by the mining industry, the board and stockholders of Atok-Big Wedge redirected the company’s corporate primary purpose from mining to general investment, and listed among its secondary purposes, mining, real estate management and development, manufacturing, food products processing, and lending and borrowing money.