APEX Mining Co. Inc. Board of Directors has approved the company's acquisition of Asia Alliance Mining Resources Corp. (AAMRC) for $81.5 million that will allow APX to expand its mining operations in Maco, Davao de Oro.
In a disclosure to the stock exchange on Monday, Apex said the total amount of the transaction shall be paid over five years, with an initial $5.5 million to be paid upon signing of the share purchase agreement. The remaining $76 million, meanwhile, shall be paid in four equal annual installments over the next five years.
The acquisition by Apex of 1,900,000 shares of Asia AAMRC represents 100 percent of the outstanding capital stock of the latter under terms and conditions agreed with the sellers Clariden Holdings Inc. and Simon Paz, Leo Atayde, Marie Paz Tacorda, Anabelle Dera and Irene Escueta.
Under the deal, Apex 'shall advance to AAMRC the commitment fees due to PMDC under the joint operating agreement. These commitment fees shall be charged against the 5-percent royalty fees that AAMRC will pay to PMDC during commercial operations.'
The company said the transaction is meant 'to allow APX to expand its mining operations in Maco, Davao de Oro and provide APX with a suitable site for a new tailings storage facility (TSF) that it needs to sustain and expand its mining operation beyond the limited lifespan of its current TSF.'
AAMRC is a mining company with interests, by virtue of a notice of award issued by the Philippine Mining Development Corp. as the highest bidder for the joint operating agreement over copper mines and mining claims covering 20,237 hectares situated in the municipalities of Mabini, Maco and Maragusan, Davao de Oro covered by the North Davao Mining Corp. application FTAA-XI-14.
The project area has been amended to 19,135.12 hectares after the Department of Environment and Natural Resources Region XI (Davao Region) issued area status and clearance last February 2022.
The NDMC mining claims that will be developed and operated by AARMC surround the existing mining claims and operations of APX in Maco, Davao de Oro. APX had an application for production sharing agreement which overlapped with the NDMC claim but lost the case against PMDC in the Supreme Court in 2020.