MANILA, Philippines - The local unit of Brazilian mining giant Companhia Vale do Rio Doce is acquiring the rights of Lucio Co-owned holding firm Cosco Capital Inc. to explore a copper and gold mining property in Western Visayas.
In a regulatory filing, Cosco Capital said it signed an option agreement with Vale Exploration Philippines Inc.
“The option agreement gives Vale the sole option to purchase Cosco Capital’s rights, interests and title over the copper project located in Concepcion, Iloilo,†Cosco Capital said.
The deal also includes the exclusive right to conduct exploration activities, which are required to evaluate and assess the economic feasibility of the gold and copper project.
“Vale assumes possession and exploration of the tenement subject to the terms and conditions stated in the agreement,†Cosco Capital said.
In June 2010, Cosco Capital, previously Alcorn Gold Resources Inc., secured the Department of Environment and Natural Resources’ approval to explore the 700-hectare mining property in the municipality of Concepcion in the northeastern part of Iloilo.
For its part, the agreement with Cosco Capital marks the re-entry of the company in the Philippine mining sector.
In October, listed miner Geograce Resources Philippines Inc. terminated an exploration agreement with Vale.
Geograce signed a mutual termination deed with Vale, nullifying the exploration and option agreement for seven mineral claims covering 84,046 hectares in Masbate Island. In 2008, Vale agreed to provide $6 million over three years to fund the early-stage exploration on Geograce’s Masbate gold and copper tenements.
Aside from the Concepcion property, Cosco Capital also holds the rights for a 5,998-hectare gold and copper mining tenement in Oas, Albay in partnership with Bentley Fairview Resources Corp.
Cosco Capital is also the firm behind the 405-hectare Anoling gold project in Agusan del Sur. Mining operations of the Anoling project pending the government’s final approval of the mineral production sharing agreement.
In January to September last year, Cosco Capital’s net income more than doubled to P2.22 billion from the pro-forma P948 million a year earlier. Its revenues jumped 35 percent to P54.4 billion from P40.25 billion year-on-year, primarily driven by retail chain Puregold Price Club Inc.