Nihao raises P500 million from rights offer

MANILA, Philippines - Nihao Mineral Resources International Inc. recently raised P500 million through a stock rights offering.

The offering involved 500 million shares sold at a ratio of five shares for every one share held as of Oct. 9.

The listing of the shares has been scheduled on Dec. 15.

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.