MRC Allied signed a memorandum of agreement with a former mining executive for its mining rights to several prospect areas for P1.5 billion.
In a disclosure to the Philippine Stock Exchange, MRC Allied said it signed the agreement with Salvador Zamora II for the mining rights in the copper-gold prospect areas in Mindanao.
Among the prospect mining projects involved in the deal are the Kibalawan project with an area of 7,559.1 hectares (ha) in Davao del Sur and Columbio, Sultan Kudarat; the Marihatag project with a 3,759.3 ha area in Surigao del Sur; the Paquibato project with a 593.2 ha area in Davao City; and the Boston-Cateel project with 4,860 ha area in Davao Oriental.
MRC Allied said Zamora will pay P750 million upon signing of the agreement with the remaining balance to be derived from the 50 percent revenue from operations of up to P750 million or 50 percent of the proceeds of up to P750 million if the buyer decides to sell the mining assets.
MRC Allied said the decision to sell its entire mining assets will solidify its status as a “holding company and to diversify into energy, social and governance related portfolios including but limited to renewable energy and other potentially viable projects that will add value to its company and stockholders.”
Among MRC Allied’s existing renewable energy projects are the 550 kilowatts peak solar rooftop project in Northern Luzon which was installed on a rice mill through Menlo Renewable Energy Corp.
Other solar projects where it was involved are the SEPALCO’s 50 megawatts (MW) solar farm, the 100 MW SPI Clark project and another 60 MW in Naga. – Jed Macapagal
