Philippine nickel miner pursues $22-mln IPO despite metal slump

TVI Pacific

15/10/2015 08:53

MANILA, Oct 15 (Reuters) - Philippine nickel miner TVI 
Resource Development (Phils) Inc plans an initial public 
offering to raise up to 1 billion pesos ($22 million) to fund a 
domestic gold and silver mining project, a preliminary 
prospectus showed. 
    Braving a slump in nickel prices chiefly due to weak demand 
from top buyer China, the company, in which Canadian miner TVI 
Pacific Inc  TVI.TO  has an equity interest of about 31 percent, 
seeks a Dec. 18 listing on the Philippine Stock Exchange. 
    The Southeast Asian country, which has 27 nickel mines, was 
last year's biggest ore supplier to China's producers of nickel 
pig iron, used to make stainless steel, after previous top 
supplier Indonesia banned exports of some unprocessed minerals. 
    TVI Resource is one of two Philippine nickel miners seeking 
to raise funds for expansion via share sales. But the timing of 
a planned follow-on offer by the second miner, Global 
Ferronickel Holdings Inc  FNI.PS , remains uncertain amid a drop 
of nearly 60 percent in its stock price this year.  urn:newsml:reuters.com:*:nL3N10923F 
    Shares of other Philippine nickel miners have slumped this 
year, following stellar performances in 2014, with top ore 
producer Nickel Asia Corp  NIKL.PS  also down more than 50 
percent. 
    Before embarking on nickel mining last year, the 21-year-old 
company previously produced copper, gold, silver and zinc at the 
now closed Canatuan mine in southern Philippines. 
    It plans to sell up to 272.02 million shares, representing 
10 percent of its projected outstanding common share capital 
after the IPO, at an offer price of up to 3.71 pesos per share, 
which could raise up to $22 million. A secondary offering of up 
to 136.01 million shares could raise $11 million. 
    Proceeds from the primary offer will finance the company's 
Balabag gold and silver project in the southern province of 
Zamboanga del Sur. Subject to regulatory approvals, the final 
offer price is to be set on Nov 26. 
 
 (Reporting by Erik dela Cruz; Editing by Clarence Fernandez) 
 ((enrico.delacruz@thomsonreuters.com; +632 841-8934; Reuters 
Messaging: enrico.delacruz.thomsonreuters.com@reuters.net)) 
 
Keywords: TVI PACIFIC IPO/PHILIPPINES