Listed Nickel Asia Corp. (NAC) said it is in negotiations with Sumitomo Metal Mining Co. Ltd. for the sale of its entire shareholding in Coral Bay Nickel Corp. (CBNC).
The Philippine mining company said in a disclosure to the Philippine Stock Exchange yesterday its stake is equivalent to 15.625 percent of the total outstanding and issued capital stock of CBNC, which operates an ore processing facility in Palawan.
As a condition precedent for the proposed sale, NAC said it will engage a third party to conduct a valuation of the CBNC shares. The company also reclassified its investment in CBNC shares as available for sale and will no longer recognize equity gains or losses from its investment.
In a separate statement, Andre Dy, NAC vice president for treasure and investor relations, said the move is also driven by the volatility in the nickel market, as well as the company’s decision to focus on its upstream mining and renewable energy businesses. Jed Macapagal
