A letter of intent (LOI) that would have allowed Nickel Asia Corp. (NAC) to operate the mineral production and sharing agreements of Hallmark Mining Corp. and Austral-Asia Link Mining Corp. in Davao Oriental has been terminal.
NAC said involved companies failed to agree on the commercial terms of the definitive agreements regarding its proposed provision of mining contractor services to Hallmark and Austral-Asia in relation to the MPSAs.
The LOI would have made NAC the exclusive mining service contractor for the MPSAs for two mine properties collectively identified as the Pujada prospect.
In a disclosure to the Philippine Stock Exchange yesterday, NAC said the parties decided to terminate the LOI last Friday.
Last year, Hallmark and Austral-Asia accepted the LOI of NAC which was tasked conduct due diligence and exploration activities.
Hallmark’s MPSA covers 4,999.71 hectares (ha) in Mati and San Isidro, Davao Oriental as well as Austral-Asia’s MPSA covering another 5,000 ha in Mati and Gov. Generoso, Davao Oriental.
The agreement also permitted NAC to conduct a feasibility study to determine the economic and technical viability for the company to establish a high-pressure acid leach ore processing plant or an equivalent mineral processing plant within the MPSA areas. -Jed Macapagal
