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Global Ferronickel Holdings Inc. said Monday it terminated plans to acquire Ferrochrome Resources Inc., a company that holds two operating mining agreements in Zambales.
Global Ferronickel said in a disclosure to the stock exchange it was no longer keen on pushing through with the acquisition of FRI “due to the non-fulfillment of the conditions enumerated in the memorandum of agreement” dated November 2014.
Share price of Global Ferronickel sank 12.3 percent Monday to close at P2.21 apiece from Friday’s close of P2.52.
Global Ferronickel earlier had planned to acquire 100 percent ownership of FRI, which holds two operating agreements with Zambales Diversified Metals Corp., covering an area of 3,765 hectares, and with Zambales Chromite Mining Co. Inc. covering about 540 hectares.
FRI is one of the two mining companies that GFRI planned to acquire to boost its mining operations.
The other is Southeast Palawan, which owns a 90 percent stake in Ipilan Nickel Corp., a company engaged in nickel mining in Brookes Point, Palawan.
Global Ferronickel is currently the third largest nickel producer in the country by operating two open pit deposit sites, known as CAGA 2 and CAGA 4, within its lateritic nickel mine in Cagdianao, Claver, Surigao del Norte, known as the Cagdianao mine.
The mining firm has pending plans raise as much as P31 billion to fund exploration and acquisition projects.
Global Ferronickel had planned sell up to 7.089 billion in primary and secondary shares, including 924.723 million shares to cover overallotment at a maximum price of P4.38 per share. The share sale is slated during the first half of the year.
Half of the shares will be primary shares while the other half are secondary shares to be sold by existing shareholders.
Up to 80 percent of the total offer shares amounting to 4.931 million shares will be sold to overseas investors, while the balance totalling 1.232 million shares will be allotted for domestic investors.
In July, new investors, mostly shareholders of Platinum Group Mining Corp., acquired an 89.82 percent interest in Southeast Asia Cement Holdings Inc., a move seen as a backdoor listing strategy.
The new shareholders conducted a tender offer to acquire the remaining stake owned by minority investors in Seacem.
The Seacem board in September approved an increase in the company’s authorized capital stock to P12.55 billion and a change its corporate name to FRHI.
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- [Editor:sunzhichao]
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