MRC Allied approves P720 M stock rights offering

MANILA, Philippines - MRC Allied Industries Inc. has approved a 1:1 stock rights offering to raise around P720 million.

In a disclosure to the Philippine Stock Exchange, MRC chairman and president Benjamin Bitanga said stockholders can buy one share for every share held as of a record date yet to be set by the company at P0.20 apiece.

The board has yet to firm up the terms, conditions and other details of the rights offer.

Bitanga said the company has mandated Philippine Commercial Capital Inc. (PCCI) as its underwriter.

Proceeds from the offering will be used to fund the development of a gold processing plant in San Miguel, Surigao del Sur.

MRC recently completed the acquisition of 100 percent of MRC Surigao Mines Inc.

The plant, which will require a total capital outlay of P800 million, will produce a minimum of 2,000 tons of gold a day. It will eventually process copper.

The development of the facility will be done in phases. 

MRC’s entry into the mining industry started with the acquisition of the 8,200-hectare Kiblawan prospect, which straddles between Sultan Kudarat and Davao del Sur.

The Kiblawan mine is adjacent to the $5.2-billion Tampakan copper-gold project. 

The company earlier acquired a 2,059-hectare gold and copper mining project in Marihatag, Surigao del Sur for about P140 million.