Gaisano group buys into Apex Mining

MANILA, Philippines - The Cebu-based Metro Gaisano group family has purchased P132 million worth of shares in Apex Mining Corp., making its first foray into the country’s mining landscape.

In a disclosure to the Philippine Stock Exchange yesterday, Apex said it would issue 30 million shares, with a par value of P1 apiece, to Vicsal Development Corp.

Vicsal is private family corporation primarily engaged in the retail business. It owns and operates a chain of department stores and supermarkets popularly known as Metro Gaisano.

Aside from the retailing business, Vicsal has also established presence in financial services, stockbrokerage, and real estate development.

Vicsal is likewise engaged in the pawnshop, travel agency and trucking businessses.

Apex, on the other hand, holds a mineral production sharing agreement (MPSA) for a copper-gold deposit located at Maco, Compostela Valley, where the company mines an average of 700 tons of ore a day.   

Monte Oro Resources & Energy Inc., led by port tycoon Enrique Razon, recently raised its stake in Apex to 12 percent, reflecting its strong confidence in Apex’s management team which has committed to develop its mineral resources.

Apex is expanding its existing ore processing facility three-fold as part of a business plan aimed at upgrading resources, developing new vein systems and achieve a gold production rate of 100,000 ounces per year by 2015.

The company posted a net profit of P50 million in the first quarter this year, a reversal of the P50 million losses incurred the same period a year ago. The turnaround was attributed to higher gold prices and the streamlining of its operations under a new management team.

In another development, Apex said Mindanao Gold Ltd. intends to convert a portion of its P719.886 million receivables from Apex into equity.

Mindanao Gold would get 72.91 million class B shares in exchange for the assignment of some receivables to Apex. The shares will be acquired for P4.40 apiece or a total of P532.22 million.

In addition to this, Mindanao Gold intends to subscribe to 48.048 million class B shares worth $5 million or P211.41 million. The subscription will be paid in cash.

Apex said Mapula Creek Gold Corp. would also acquire 37.29 million class A shares of Apex in exchange for the assignment of its receivables due from the listed firm at the same price.