Century Peak Metals eyes foreign partner for ore processing

Century Peak Metals Holdings Corporation is negotiating for a deal with Fuju Com Resources Inc., a firm incorporated in the Republic of Seychelles, for the processing of nickel and chromite ore.

In a disclosure to the Philippine Stock Exchange (PSE) Monday, CPM corporate information officer Ma. Angela Ong said the firm’s board has authorized the negotiation and execution of a memorandum of agreement between subsidiary Century Peak Corporation (CPC) and Fuju.

The agreement will cover the processing of nickel and chromite ore extracted at CPC’s minesite located at Casiguran, Loreto, Province of Dinagat (formerly part of Surigao del Norte).

Under the proposed MOA, Fuju Com will provide the investments required for the facilities to process the nickel and chromite ore extracted, which shall then be marketed and sold by CPC.

Global Emerging Markets Limited, a $3.4 billion alternative investment group based in the United Kingdom, is investing a total of P2.9 billion in CPM.

CPM said it has executed an investment agreement with GEM Global Yield Fund Ltd. and Global Emerging Markets Investment Advisors Inc.

Under the agreement, GEM committed to subscribe to CPM shares worth P2 billion with CPM having the sole and discretionary option of deciding when and how many shares it will want GEM to subscribe.

CPM is also issuing GEM a warrant to subscribe to ip to 150 million shares that, when exercised, will generate an additional P900 million in funds for CPM.

The funding will be used mainly in the Century Hua Guang smelting project, a nickel-chromite smelting plant that CPM is building via a joint venture with the owners of Zheijiang Hua Guan.

Zheijiang is one of China’s top nickel pig iron producers which operates six smelting plants in various provinces in China, said CPM.

Nickel imports into China hit a record high in the recent months, noted CPM adding that it shipped 52,873 metric tons of nickel to China last month. (MB)

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