Abacore Capital Holdings Inc. said it has signed a coal operating agreement with Oriental Vision Mining Philippines Corp.
The agreement was an upgrade of an earlier exploration and development agreement over Abacore’s Coal Operating Contract 148 in Surigao del Norte. The coal operating contract is held by Abacore through unit Abacus Coal Exploration and Development Corp. (Abacoal).
With the new agreement, Abacore will allow Oriental Vision to develop coal blocks 84, 85 and 86. Abacore said Oriental Vision has agreed to commercially operation coal block 85 within six months of the agreement signing, and coal blocks 84 and 85 within one year.
“As part of the agreement, Oriental Vision paid P10 million in advance royalty to Abacoal – which shall be deducted from the future royalties Abacoal will receive from Oriental Vision under the agreement,” AbaCore said.
The royalty fee is set at 8 percent of the gross selling price of coal metric per ton.
“In the event that Oriental Vision finds other minerals aside from coal during exploration, the company will pay Abacoal a royalty fee of 5 percent of the gross price per ton,” the company said.
