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Tuesday, April 20, 2004 |
Manila Mining Corp. is on the look-out for a foreign partner to finance exploration and metal production at its Kalaya-an Project in Surigao del Norte.
Director Lyndon Bradish said developing the copper and gold project would entail at least $15 million (P840 million at P1 to $56).
Stock market research and data bank, Technistock, shows that except for the P2.39 million profit it made in 2000, Manila Mining has been posting losses since 1997.
"We are going to obtain outside funding for the exploration and that would come from a senior mining company - an offshore company. The scale of operation that we're looking at is going to need a company that has very deep pockets," Mr. Bradish said.
He said Manila Mining has already held talks with one firm and will be talking to another company soon. There are also three other companies lined up for talks. Discussions are expected to be done in the next six months.
Mr. Bradish did not name the companies, but said some are Australian and Canadian outfits.
He said Manila Mining is looking for a partner who is financially secure, and who has the technical expertise in exploration, metallurgy, development and operations. The firm should also be able to market the material to be produced such as copper concentrates and gold bullion.
While Manila Mining has not posted impressive financial figures over the past years, Mr. Bradish said the Kalaya-an Project is a promising site, since it is close to the Anglo-Philex discovery which has well-mineralized deposits.
Manila Mining Chairman Felipe Yap told stockholders during the annual meeting the financing it seeks from the foreign partner will be enough to deploy up to five drill rigs for the exploration and about 45,000 meters of core drilling.
"Equity financing for the drill program will be placed in the new company [which will be initially 100% owned by Manila Mining]. Once the financing has been secured, the initial work will be focused on community relations and scaling up for the drill program, which will commence two months following, " Mr. Yap said.
He said the drilling contract will be awarded to Diamond Drilling Corp. of the Philippines.
Mr. Bradish said the Kalaya-an project is a long-term venture which could take about four to five years to develop, and there is still no estimate on how much the project would boost revenues.
By: Anna Barbara L. Lorenzo
Reporter
Source: BUSINESS WORLD
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