Marcventures Holdings Inc. is increasing its authorized capital stock to up to P7 billion from P4 billion in preparation for a possible fundraising activity.
Marcventures said in a filing with the Philippine Stock Exchange it would seek shareholders’ approval to raise the capital stock P7 billion and create 100 million class of preferred shares with a par value of P10 apiece, or a total of P1 billion.
“The stockholders will be requested to authorize the board of directors to fix the size of the increase in the authorized capital stock and the number of preferred shares as well as the conditions of issuance, including the dividend rate of the preferred shares,” Marcventures said.
Marcventures will also propose the placing and subscription of up to 600 million in new common shares from the current capital stock and the issuance of warrants.
Based on the stock’s current price of P1.08 per share, the placement of 600 million shares could potentially raise P648 million in proceeds.
“The proceeds raised from the placing and subscription transaction, exercise of the warrants, and issuance of common and preferred shares are intended to be used by the company for capital expenditures, expansion of operations, repayment of loans and operational expenses,” the mining company said.
Marcventures, through wholly-owned subsidiary Marcventures Mining & Development Corp., holds a mineral production sharing agreement covering an area of 4,799 hectares in Cantilan, Surigao del Sur.
MMDC has identified nickel ore as the primary mineral that will be extracted and sold to third parties due to the abundance and favorable characteristics of nickel within the mineral property.
The Securities and Exchange Commission last year approved the merger of Marcenvetures with Asia Pilot Mining Philippines Corp. and BrightGreen Resources Holdings Inc.
The merger resulted in Marcventure’s acquisition of APMPC’s subsidiaries, namely Alumina Mining Philippines Inc. and Bauxite Resources Inc., as well as BHI unit BrightGreen Resources Corp.