MANILA, Philippines - Listed Vulcan Industrial and Mining Corp. is raising a total of P900 million via two private placement deals with Hong Kong-based firm China Trend Investments Ltd., and its owner, William Chan Wai Keung.
In a disclosure to the Philippine Stock Exchange, the listed firm said that it signed an agreement with Modern Overseas Investment Ltd. for the latter’s subscription of P450 million in par value of Vulcan shares.
Modern Overseas is a wholly-owned subsidiary of China Trend.
Vulcan said that it also signed an agreement with Chan for another private placement of P450 million under local firm, Cerberus Corp.
“They have 90 days to complete the documentation, approvals and fund the private placements,” Vulcan said.
During the state visit of President Benigno Aquino III in Beijing, China in August last year, Chan pledged the amount of $7 billion for mining, economic zone and real estate development projects in the Philippines.
In that same event, Vulcan, with its subsidiary, Vulcan Materials Corp. signed a memorandum of understanding (MOU) with China Trend for the preparation of possible joint development of mining projects.
Under the MOU, China Trend is allowed to review all of Vulcan’s existing mining exploration projects within 60 days with the view of entering into an agreement for the development of the chosen projects.
Vulcan had said that if a two-year agreement is signed with China Trend for the development of mining projects at the end of the review period, it shall receive $1 million from the Hong Kong-based firm.
Vulcan also said that it can get advances against royalties up to a maximum of P500 million.
Vulcan is engaged in mining and mineral explorations. It has been taking part in oil exploration projects since 1976.
Vulcan’s subsidiary Vulcan Materials, is involved in the quarrying, crushing and marketing of rock aggregates.