Marcventures Holdings Inc. said Tuesday its board approved a plan to merge with Asia Pilot Mining Philippines Corp. and BrightGreen Resources Holdings Inc., with Marcventures as the surviving entity.
Asia Pilot owns Alumina Mining Philippines Inc. and Bauxite Resources Inc. properties in Samar containing bauxite, the main source of aluminum.
BrightGreen, meanwhile, owns BrightGreen Resources Corp., which has a property contiguous to the operating nickel mine of Marcventures’ wholly-owned subsidiary, Marcventures Mining and Development Corp., in Surigao del Sur province.
Marcventures said as consideration for the merger, it would issue 675 million shares in favor of Asia Pilot shareholders and 450 million shares in favor of BrightGreen shareholders, or a total of 1.125 billion shares at par value of P1 apiece.
Alumina Mining holds a Mineral Production Sharing Agreement over a 6,694-hectare tenement in Motiong and Paranas (formerly Wright) municipalities in Samar province.
Bauxite, meanwhile, owns a 5,435-hectare MPSA in the towns of Gandara, San Jorge, San Jose de Buan and Matuginao in the same province.
“The merger with APMPC will allow MHI to grow its business, diversify its products and expand its source of income. Bauxite has been observed to be more stable in prices as compared to nickel ore,” Marcventures said.
BHI, through BRC, owns a 4,860-hectare tenement in Carrascal and Cantilan, Surigao del Sur.
“MHI’s objective in merging with BHI is to gain control of BRC in order to increase the nickel reserves of MMDC in case the company or its subsidiary decides to venture into nickel processing,” said Marcventures.
MMDC performs mining operations in the municipalities of Cantilan, Carrascal, and Madrid in Surigao del Sur province.