Chinese firm to buy 60% of Vulcan Mining for US$21m

Chinese firm to buy 60% of Vulcan Mining for US$21m
Published: 25 April 2012

Philippines' China Trend and its owner William Chan Wai Keung have further raised their planned investment in Vulcan Industrial & Mining Corporation by signing an agreement to subscribe to 60% or PHP900m (US$21m) worth of the mining firm's shares.

In a disclosure to the Philippine Stock Exchange, Vulcan said Modern Overseas Investment Ltd, a wholly-owned subsidiary of China Trend, had signed a subscription agreement to make a private placement of PHP450m in par value Vulcan shares. Another subscription agreement was signed by Chan for another private placement of PHP450m under a local corporation, Cerberus Corporation. It has 90 days to complete the documentation, approvals and fund the private placements.

China Trend had signed a MOU with Vulcan and Vulcan Materials Corporation as part of the Hong Kong-based firm's plan to invest US$1bn for mining development in the Philippines.

In a disclosure last August, Vulcan said the MOU will allow China Trend to review and study all its existing mining exploration projects within 60 days from signing with a view to sign a two-year Memorandum of Agreement.

At present, identified claims of various mines assigned to or located by Vulcan Mining include Marian Gold Mines in Cordon, Isabela; Dinapique gold project in Isabela; Luz Copper project in Sipalay, Negros Occidental; Manlupo copper project in Damutan, Negros Occidental; Panaon gold Prospect in Pintuyan, Southern Leyte; and Davao gold and copper project in Manay and Taragona.

Identified claims assigned to or located by Vulcan Materials include Subic Gabbro project in Zambales; Palawan Silica Sand in Roxas and San Vicente; Morong Concrete Aggregates in Bataan; Batangas Concrete Aggregates; Bolinao Cement/Limestone project in Pangasinan; and Comet Dinagat project.