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Butuan mining outfit to buy holding firm in PHP 1 billion deal
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Saturday, 13 Feb 2010
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It is reported that a mining company will take over listed AJO.net Holdings Inc within the first half under a transaction worth P1.3 billion, in a move that will transform the property holding firm into a commercial miner.

As per report, the deal involves shareholders of Marcventures Mining and Development Corp a Butuan City-based nickel miner.

Mr Augusto Serafica Jr executive director of Asian Alliance Investment Corp said “We hope to complete within the first half of this year. Asian Alliance is advising the transaction. He said that Marcventures shareholders will eventually control 97% of.”

Aaccording to a report by an investment bank Marcventures Mining is owned by Butuan businessman Mr Mario G Vijungco and has an estimated value of PHP 1.49 billion.

Mr Serafica said Marcventures Mining and AJO.net Holdings would start commercial mining operations this year. Some PHP 200 million will be spent for this. He said that “We expect to commence operations once the rainy season is done. We are waiting for the weather to improve in March this year.”

When commercial operations begin, Marcventures Mining will stockpile about 30,000 to 50,000 tonnes of nickel ore before releasing its first shipment.

Marcventures Mining has so far spent P300 million to explore and develop a 4,799-hectare nickel mine in Surigao. A 120 hectare area in the property has an estimated resource of 19.08 million MT of high-iron limonite and 4.47 million tonnes of high nickel saprolite ores that can be extracted within 20 years.

In the first year of operations, AJO.net Holdings will produce 600,000 MT of nickel ores. This will rise to 800,000 tonnes and 1.2 million tonnes in the second and third years respectively.

(Sourced from http://www.bworldonline.com)

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