MANILA Mining Corp. said it is eyeing a stock rights offering amounting to P519.2 million to fund its exploration program, administrative costs, and settle trade payables and accruals.
It plans to offer 51,917,357,740 common shares of the company, with a par value of P0.01 per share, consisting of 31,159,217,274 class A shares and 20,758,140,466 class B shares.
“The net proceeds from the offer, after costs and fees of about P11.75 million, will be used by the company to fund its exploration program, administration costs, and settle trade payables and accruals,” it said in its prospectus.
The offer period will run from May 16 to 20, with a listing date of June 20.
The company tapped Penta Capital & Investment Corp. as the underwriter.
“The offer shares shall be considered issued upon approval of Manila Mining’s application for increase of authorized capital stock with the Securities and Exchange Commission,” the company added.
According to its prospectus, the company is currently not in operation.
“It stopped its mining and milling operations on July 25, 2001 due to the expiration of the Temporary Authority to construct and operate Tailings Pond issued by the Environmental Management Bureau. Thereafter, activities have been limited to exploration and to securing the company’s assets,” it read.
Manila Mining was incorporated in 1949 to primarily engage in the mining and exploration of metals.
The firm had two mining lease contracts with the government located in Surigao del Norte and currently has three other mineral production sharing agreement applications covering locations in Surigao del Norte and Agusan del Norte.
It is an affiliate of Lepanto Consolidated Mining Co. and has one subsidiary, the Kalaya-an Copper-Gold Resources, Inc., which it owns 95% with Philex Mining Corp. owning the rest.
At the stock exchange on Monday, Manila Mining shares ended lower by 3% at P0.0097 apiece. — Luisa Maria Jacinta C. Jocson