Apollo Global Capital Inc.(APL) is ready to jumpstart its offshore mining operations with its Mining arm JDVC Resources Corp. The company received P988M from selling 12.35 billion common shares at P0.08 per share through a follow-on offering (FOO) In the Philippine Stock Exchange(PSE).
Apollo Global owns 90.47 percent of JDVC Resources, which was established to undertake offshore large-scale magnetite mining and other mineral resources in Cagayan. It holds Mineral Production Sharing Agreement No. 338-2010-II-OMR Amended-A covering 1,897.02 hectares for the conduct of research and mining operations in the area. FOO proceeds will be used to fund the purchase of a 49 percent stake in Poet Blue Ocean Pte Ltd., which owns the vessel that will be used for the offshore mining activities.
“Now that this FOO has jumpstarted the company’s quest to commence operations, I hope that all other factors will fall into place because the company’s investors have long-awaited and deserve positive developments on this front,” said PSE President and CEO Ramon S. Monzon.
The Company’s strategy is designed to maximize the profitability of its existing base of operations while driving growth through continued exploration of the offshore mine located in Cagayan Province, expansion of its customer base, and ongoing monitoring of value-added opportunities, particularly downstream processing.
Iron from magnetite is mainly used in industrial steel production. Substitution is one of the biggest risks in the steel industry, with aluminum being used by automobile manufacturers due to its lightness. Steel, however, is stronger than aluminum, making it essential for a modern building. Some steel manufacturers are also focusing on the technology aspect of manufacturing steel to compete against aluminum manufacturers.
JDVC partnered with Kinetic Holdings Corp. of nickel miner and restaurant magnate Frank Lao to hunt for magnetite ore in its 4,999-hectare mining tenement in Cagayan.
The company has earlier asked the PSE to limit its foreign ownership to 40 percent from 100 percent since the exploration for and exploitation of minerals in the Philippines under mineral and operating agreements with the government may only be conducted by Philippine nationals.
Read more: APL FOO Prospectus ; Bilyonaryo
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