BYVG CABUAG AUGUST 31, 2021
Apollo Global Capital Inc., the parent company of black sand miner JDVC Resources Corp., has completed its follow-on offering (FOO) worth nearly P1 billion.
The company said on Tuesday it completed the offering of 12.35 common shares, priced at P0.08 per share or proceeds of P988 million. The shares were listed on the Philippine Stock Exchange (PSE).
“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,” PSE President and CEO Ramon S. Monzon said in his welcome remarks during the listing ceremony.
As a result of the FOO, the company’s outstanding and listed shares will increase to 292.68 billion common shares from 280.33 billion shares.
Apollo Global shares fell 4.4 percent on Tuesday to close at P0.109 apiece.
Proceeds from the offer will be used for the acquisition of a 49-percent stake in Poet Blue Ocean, a special purpose vehicle, which owns the MB Siphon I vessel that will be used for the offshore mining activities of JDVC Resources Corp.
The company indicated in its prospectus that weather permitting and once all the necessary environment protection equipment and ecologically balanced offshore mining protection gears have been purchased, the MB Siphon Vessel I is estimated to start operations on or before April 30, 2022.
The company will also allocate part of the proceeds for the purchase of environmental and ecological mitigating measures, equipment and insurance, as well as for general corporate purposes.
Apollo Global is mainly invested in JDVC, which is undertaking a large-scale, offshore black sand mining project off the coast of Cagayan.
The company engaged Investment and Capital Corporation of the Philippines as issue manager and underwriter for the offer.
The company 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.
Apollo Global 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.
“Considering the foregoing and for the purpose of complying with the foreign ownership limit applicable to JDVC, the foreign ownership in the company should not exceed 40 percent of the company’s outstanding capital stock entitled to vote,” it said.