Apex Mining Co. Inc. has completed its acquisition of Asia Alliance Mining Resources Corp. (AAMRC), expanding its mining operations in Davao de Oro.
In a disclosure to the Philippine Stock Exchange, Apex Mining said that it signed a Deed of Absolute Sale for the Shares amounting to $81.5 million after complying with the closing conditions.
The sales will be acquired at $42.895 apiece and will be paid over five years.
Following the signing of a share purchase agreement, Apex Mining will pay $5.5 million while the remaining balance of $76 million will be paid in four equal yearly installments in the next five years.
AAMRC’s mining interest is covered by a notice of award from the Philippine Mining Development Corp. (PMDC) being the highest bidder for the joint operating agreement over copper mines and mining claims.
The joint agreement covers around 20,237 hectares in Mabini, Maco, and Maragusan towns in Davao de Oro, covered by the North Davao Mining Corp. (NDMC) application FTAA-XI-14.
Said project area has been amended to 19,135.12 hectares following the area status and clearance issued by the Department of Environment and Natural Resources Region XI.
APEX Mining said its mining operations in Maco, Davao de Oro will be able to expand and have a suitable site for a new tailings storage facility when the existing TSF reaches full capacity in the next three years.
The transaction is subject to the sellers’ settlement of AAMRC’s litigation over the NDMC claims with the PMDC, covering the joint motion for approval of a compromise agreement by both PMDC and AAMRC with the Court of Appeals and the Regional Trial Court of Pasig City.
The deal will be subject to an execution of a joint operating agreement wherein AAMRC shall explore, develop, and operate the NDMC mining claims – this surrounds the mining claims and operations of APEX in Maco, Davao de Oro.
Other includes the assignment of AAMRC of application FTAA-XI-14 by PMDC, the approval by PMDC of the transfer of shares from the sellers to APEX, and the execution of the deeds of absolute sales for the shares.
APEX Mining noted that it will advance commitment fees to AAMRC due to PMDC under the joint operating agreement, which will be charged against the five percent royalty fees that AAMRC will pay to PMDC during commercial operations.
