MRC Allied gets contract to develop Davao mine

MANILA, Philippines - MRC Allied Inc. has secured a contract to explore and develop the Paquibato Mines in the mineral-rich mountains of Davao City.

In a disclosure to the Philippine Stock Exchange, MRC said it acquired the mining rights of Pensons Mining Corp. over the Paquibato Mines. MRC is considering forming a wholly-owned subsidiary to serve as the vehicle for the project.

MRC reported that the Mines and Geosciences Bureau (MGB) has been processing applications of at least 11 companies to mine in more than 95,000 hectares in the area where the Paquibato Mines is located.

With skyrocketing metal prices, MRC is ramping up its acquisition program with plans to acquire two to three more mine sites in Mindanao in line with its bid to become a major player in the mining industry.

MRC’s near-term plan is to acquire up to five sites which produce gold and copper.

The group currently has two sites — a 3,718.41-hectare copper-gold project located in Marihatag, Surigao del Sur and a 7,995-hectare mine in Kiblawan and Columbio, Sultan Kudarat.

The Kiblawan mine site, acquired from Alberto Mining, is adjacent to the $5.2 billion tampakan copper-gold project.

Officials said MRC remains on the lookout for prospects, noting that the Philippines is rich in natural resources yet remain largely unexplored.

Funding for the company’s projects will come from a planned private placement or rights offering possibly in the first quarter this year, estimated to raise as much as P1 billion.

MRC is setting up a P1-billion subsidiary to be called MRC Mining Inc. to handle its mining endeavors. MRC is 87 percent owned by Menlo Capital, which is 60 percent owned by the Osmeña family and 10 percent by the son of tobacco and airlines tycoon Lucio Tan.

Among MRC’s notable assets include the 237-hectare New Cebu Township One (NCTO) and 2,312-hectare Amihan Woodlands Township (AWT) in Leyte, both master planned communities with integrated residential, commercial, industrial and tourism areas.