Coal Asia beefing up stake in Titan Mining

MANILA, Philippines - Coal Asia Holdings is beefing up its shareholdings in wholly-owned unit Titan Mining & Energy Corp. (TMEC), which owns the mining and development rights in Davao Oriental and Zamboanga, Sibugay.

In a disclosure to the Philippine Stock Exchange, Coal Asia said its board approved a plan to subscribe to TMEC’s capital increase from P350 million to P1 bilion.

Upon approval by the Securities and Exchange Commission of TMEC’s increase in authorized capital, Coal Asia’s shareholdings in TMEC will total 162.5 million shares.

Partial payment of Coal Asia’s additional subscription was made via assignment of its advances to TMEC in the amount of P118 million.

A Philippine mineral reporting code standard geological report completed in April identified the Davao Oriental and Zamboanga Sibugay sites with a total potential coal resource of 120 million tons.

The development plan for the Davao mine is on schedule with commercial production of 600,000 tons of high grade coal per year scheduled to begin in 2014.

Coal Asia has already secured offtake contracts for coal from domestic and international customers and is looking to export to India, Japan, Taiwan, Hong Kong and Vietnam.

The company is well positioned to capitalize on the expected growth in coal demand by large scale energy producers preparing for growth in Mindanao.

 To add to its commitment to the energy sector, Coal Asia’s affiliate, Colossal Petroleum Corp., signed a memorandum of agreement to buy into VenturOil which owns Service Contract (SC) 6 covering the offshore oil and gas exploration rights to Northwest Palawan encompassing the Cadlao and Bonita oil fields.