LISTED Bright Kindle Resources & Investments, Inc. (BKR) said its subsidiary is finalizing the acquisition of a Leyte-based iron ore mining company.
In a disclosure on Wednesday, BKR said that its subsidiary, Brightstar Holdings and Development, Inc. (BHDI), has executed a deed of exchange with Strong Built (Mining) Development Corp. (SBMDC).
BHDI will issue new common shares and assets of up to P5 billion in exchange for 100% of SBMDC’s outstanding shares.
“BHDI will acquire SBMDC for and in consideration of BHDI’s issuance of new common shares and assets of up to P5 billion in exchange for 100% of the outstanding shares of stock of SBMDC at a transaction price of up to P5 billion or P50 for every SBMDC share,” the company said.
According to the Mines and Geosciences Bureau, SBMDC has a 25-year term under its mineral production sharing agreement, with an expiration date set for July 28, 2032.
The mining company extracts iron ore and other associated mineral deposits within its 7,411.56-hectare property.
In a disclosure in May, BKR said that its board of directors had approved the planned acquisition of SBMDC through a share-for-share and property-for-share swap.
The company said that the property-for-share swap includes a condominium unit and four parking slots in exchange for shares in SBMDC.
Bright Kindle had earlier acquired a 19.9% stake in Marcventures Holdings Inc., which is involved in mining, extracting, and smelting mineral ores such as nickel, chromite, copper, gold, and manganese.
On the stock exchange on Wednesday, shares in BKR fell by 13 centavos or 9.35% to P1.26 apiece. — Adrian H. Halili
