MANILA, Philippines - Listed Apex Mining Co. Inc. is acquiring all outstanding capital stock of Monte Oro Resources & Energy from various shareholders to expand its mining business.
In a regulatory filing yesterday, the company announced that its board approved last Thursday the cash purchase of shares from Monte Oro shareholders Prime Metroline Holdings Inc., Lakeland Village Holdings Inc., Devoncourt Estates Inc., A. Brown Company Inc., Wealth Securities Inc. and other shareholders of Monte Oro.
The buyout involves 5,122,161,096 shares at par value of one peso apiece. The acquisition would be funded from cash raised through the issuance of new shares as the company raises its authorized capital stock.
Apex said the acquisition would give it access to another mineral processing plant, as well as expansion opportunities in Jose Panganiban in Camarines Norte.
This would also strengthen the company’s balance sheet with an increase in its asset base and equity.
Monte Oro fully owns Paracale Gold Ltd. that runs a mineral processing plant in Jose Panganiban, Camarines Norte, and 40 percent of Bunawan Mineral Resources Corporation which has two mining lease contracts covering 653.28 hectares and pending applications for production sharing agreement and exploration permits.
Monte Oro also has a 30 percent interest in Service Contract no. 72 that covers an offshore gas project in Palawan, as well as a 52 percent stake in International Cleanvironment Systems Inc. that has a solid waste management contract with the Philippine government for Metro Manila.
Monte Oro’s other assets include holdings in foreign firms engaged in mining and exploration work in Mongolia and Sierra Leone in Africa.
In December 2013, Apex Mining shelved the its ambitious Apex 3000 expansion program that sought a production hike of 3,000 tons of ore per day in its Maco mine in Campostela Valley from 850 tons per day.Considering the ore resources in the mine, Apex opted an increase instead to only 1,500 tons of ore per day.
The Maco mine produces bullions containing gold and silver which are smelted in Switzerland.