MRC Allied to raise P1.5B via private placement

MANILA, Philippines - MRC Allied Inc. is raising P1.5 billion through a private placement of shares as part of a two-phased fund-raising program to jumpstart the development of a 7,995-hectare gold and copper mine site in Mindanao.

In a briefing yesterday, MRC president BenjaminBitanga said the offering will likely take place this month and that the company will appoint an underwriter for the private placement in the next two weeks to raise the necessary cash to start exploration works at the mine site located in Kiblawan and Columbio, Sultan Kudarat. 

The property is adjacent to the $5.2-billion Tampakan copper-gold project , which is believed to contain one of the biggest untapped copper resources in Southeast Asia.

Bitanga said the second phase involves an initial public offering (IPO) of shares by MRC Tampakan Mines, a newly-organized company that will serve as the group’s vehicle for the project.

MRC chief financial officer Vicente Laza said those that would subscribe to the private placement would have an option to convert their MRC common shares to shares of MRC Tampakan or avail of a 20- percent discount on MRC Tampakan’s IPO price.

Bitanga said MRC has been approached by several investor groups from China and the United States as well as a local firm, which he declined to identify for a possible joint venture with respect to the Kiblawan project.

MRC’s entry into the mining business was formalized following the signing of a mining operations agreement with Alberto Mining Corp., through its president Geronimo Palermo. Under the agreement, MRC issued P300 million worth of shares and cash to Alberto Mining, is reportedly the same group behind Sagittarius Mines which owns the 11,000-hectare Tampakan copper gold project.

Bitanga said the company is upbeat on the Kiblawan project, pointing out that earlier geological studies showed similar findings as those in the Tampakan mine during its initial test phase.

He said the company would conduct drilling activities once it secures the necessary permits from the government and other parties.

Bitanga said the Kiblawan project will serve as MRC’s flagship mining project and the backbone of its future business ventures.

MRC has secured a contract to explore and develop the Paquibato Mines in the mineral-rich mountains of Davao City and a 3,718.41-hectare copper-gold project in Marihatag, Surigao del Sur.