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Mining and Minerals Industries to buy majority stake in Philippines copper-gold project
MINING and Minerals Industries Holding (MMIH), which is eyeing a reverse takeover (RTO) of Singapore-listed China Hongxing Sports, on Tuesday said it has entered into a conditional agreement to acquire an 80 per cent stake in a copper-gold project in the Philippines for some S$18.62 million.
MMIH is in the process of selling certain mining assets in the Philippines, including this Mankayan copper-gold project on Luzon Island, to mainboard-listed China Hongxing. If successfully completed, this would constitute an RTO of the sporting goods company - a move which could make gold mining the core business of China Hongxing instead.
The estimated consideration of S$18.62 million payable by MMIH to Bezant Resources Plc consists of up to S$3.12 million to finance the Mankayan project, further funding of up to S$5.5 million to conduct a feasibility study, and the issuance of S$10 million of shares in the listed company following the successful RTO of China Hongxing, MMIH said.
Among other things, completion of the proposed acquisition is subject to the approval of Bezant shareholders at a general meeting to be convened, and MMIH amending its existing RTO agreements with China Hongxing to include the completion of the proposed acquisition as a condition precedent to the RTO deal, within five business days of the the Bezant general meeting.
Commenting on the proposed acquisition, MMIH director, Ashok Agrawal said: "With the inclusion of the Mankayan Project into the planned RTO of China Hongxing, the project will become our main focus as it will be the most valuable mineral resource in our asset portfolio, the closest to development and about to enter the project feasibility stage."