Mining firm United Paragon Mining Corp. (UPM) is in talks with a potential partner to address its negative shareholder equity.
UPM said in a disclosure to the stock exchange Friday discussions with Camarines Minerals Inc. (CMI) is making “significant headway” and it expects a deal to be finalized within the first quarter of 2025.
“We are pleased to inform you that we are actively engaged in fruitful ongoing negotiations with our partner, Camarines Minerals, Inc. (CMI) and are making significant headway toward a mutually beneficial resolution,” UPM said.
“While the process is complex and requires careful consideration of all factors, including the precise mechanics of the debt reduction and conversion, and the participation of all other creditors, we are on track to conclude an agreement by the first quarter of 2025,” it said.
The negotiations are primarily focused on identifying the liabilities to be converted and reducing the accrued interest while maintaining the required minimum public float.
The measures will result in a substantial reduction of in its outstanding liabilities and bring UPM’s capital back to positive, UPM said.
“We are confident that the outcome will be in line with our initial projections and will ensure the continued financial stability and long-term viability of UPM,” the mining firm said.
UPM and CMI are partners in the development of a mine in Camarines Norte.
The partners are working with Mines and Geosciences Bureau and Environmental Management Bureau (EMB) to secure all requirements for the approval of Declaration of Project Mining Feasibility (DMPF) and restoration of Environmental Compliance Certificate (ECC).
UPM operated Longos Mine at Paracale, Camarines Norte from 1988 to 1994. However, the mine was placed under care and maintenance in December 1998 because of serious depletion of economic reserves, high operating costs and low metal prices.
The company decided to suspend further drilling in the mine in 2024. Since then, its principal activities were limited to exploration and confirmation drilling.
