Wellex to use asset sale proceeds for mining, oil exploration

Wellex Industries Inc., which currently leases out its warehouse facilities, is currently seeking board approval to sell some of its assets and use the proceeds for mining and oil exploration.

The company plans to sell “mainly equipment that are dilapidated already…to gain more liquidity, especially next year," Weslie T. Gatchalian, Wellex Industries Inc. President and chief executive officer, said at the sidelines of its stockholders meeting.

Only 24 of 40 warehouses—owned by its subsidiary Plastic City Industrial Corp.—are currently being leased. Contents of its unoccupied warehouses will be sold, allowing the company to rent it out to customers.

However, Gatchalian said that the company is not inclined to dispose of its properties since these are its biggest assets.

The company will use internally-generated funds to explore for chromite ore in properties it will soon acquire in Surigao del Norte, Surigao del Sur, and Dinagat island, Gatchalian added.

Gatchalian also raised the possibility that Wellex may participate in an property auction to be undertaken by the Department of Environment and Natural Resources (DENR).

“We’re assessing the costs of doing the exploration and mining development. From there we will then asses where we’ll get the funds or what options we have," he said. (GMANews.TV)

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