The first tranche of the Issuance Program culminated on March 2, 2012 with Macquarie Bank's subscription to Thirty Three Million (33,000,000) common shares at the subscription price of Nine Pesos and Forty Six Centavos (Php9.46), for a total amount of Three Hundred Twelve Million One Hundred Eighty Thousand Pesos (Php312,180,000.00).
On March 5, 2012,
NiHAO Mineral Resources Inc. executed a General Contracting Agreement (Contracting Agreement) with Geogen Corporation, Geogen holds the rights over a mineral property consisting of an aggregate 2,391.4081 hectares located at Dinapigue, Isabela (the "Mineral Property") and covered by Mineral Production Sharing Agreement ("MPSA") No. 258-2007-II dated July 30, 2007. Under the Agreement, the Company agreed to perform mining services to Geogen for the development of the Mineral Property, including among others, mining, extraction, piling, stowing, and trimming of nickel ore, hauling services, barging, wharfage, arrastre and stevedoring services, as well as environmental maintenance services (the "Contracting Services"). For and in consideration of the Services to be performed by the Company pursuant to the Agreement, Geogen shall pay the Company an amount equivalent to ninety percent (90%) of the invoice value of the nickel ore sold by Geogen to third parties less amounts due to AGP Industrial Corporation's (AGP) by way of management fees pursuant to the Management Agreement with Option to Buy executed between Geogen and AGP on October 14, 2011. Portions of the funds raised under private placement transaction will fund the following projected expenses to be incurred for the Contracting Services to be rendered by the Company to Geogen, to witt:
- Offer Expenses including, among others, the following:
- Gross expenses related to Proceeds
- Documentary Stamp Tax
- Listing Application Fee
- Other Miscellaneous Expenses
- Exploration Works including, among others, the following:
- Drilling Works
- Report Preparation
- PMRC Compliance
- JORC Compliance
- Project Development including, among others, the following:
- Port Project Studies
- Permitting
- Port Project Development
- Road and Environmental Structures
- Working Capital including, among others, the following:
- General Expenses
- Administrative Expenses
- Professional Fees
Apart from the funding requirements for the Dinapigue, Isabela Project, total proceeds derived from the private placement transactions with Macquarie Bank will also be used, by way of capital and working expenses, to finance the following:
- Internal operating costs to include, among others, the following:
- General Expenses
- Administrative expenses
- Professional fees
- Permitting fees and compliance expenses
- Other costs incidental to operations
- Expansion of investments and business interests and expenses incidental thereto
- Business mergers and acquisitions, either through the Company or its subsidiaries, or its joint venture partner, Glencore International PLC, of other business interests and expenses incidental thereto.
