Monte Oro Resources and Energy Inc., a wholly-owned unit of Apex Mining Co. Inc., changed its corporate name and increased the capital base to P1 billion after applying for a franchise to operate as a distribution utility in Iloilo City.
Apex also clarified to the Philippine Stock Exchange on Thursday Monte Oro was not acquiring Panay Electric Co. Inc.
It said Monte Oro, formerly known as MORE Minerals Corp., amended its primary purpose to a distribution utility, increased the capital stock to P1 billion and changed its name to MORE Electric and Power Corp.
“This company has applied for legislative franchise to operate in Iloilo City, which is still pending in Congress,” APX said.
Apex said Monte Oro assumed subscription of two billion shares by Prime Metroline Holdings Inc. to fund the project. PMHI is the single biggest stockholder of Apex, while Monte Oro retains 250 million shares in the company.
“This proposed project is subject to many approvals including a legislative franchise and a Certificate of Public Convenience and Necessity from the Energy Regulatory Commission. An appropriate disclosure will be made once the company has obtained the regulatory approvals for this project,” Apex said.
The Private Electric Power Operators Association earlier opposed the franchise application of Monte Oro, which is contesting the renewal bid of Panay Electric Co. that has been operating in Iloilo City for nearly a century now.
“Should MMC be granted the franchise to operate and maintain distribution and conveyance of electric power in Iloilo City, there will be a high risk of a power crisis occurring considering that MMC has no distribution system to operate and will build one from scratch,” PEPOA said.
“This development is deeply concerning to us as it puts a highly urbanized city like Iloilo at risk,” the association said.
PEPOA president Ranulfo Ocampo said Monte Oro did not have the technical capability to operate and maintain a power distribution utility.
“Even if MMC were to change its primary purpose into power distribution, no company can get the required experience and qualifications in just a few days,” Ocampo said.