Canadian miner raises $1.9M to fund nickel projects in PHL

MBMI Resources Inc., a Canada-based mining firm operating in the Philippines, has raised $1.9 million by issuing more than 10 million units at a price of $0.18 a unit. Each unit consists of one common share and one warrant — or derivative security — combined as a single security. Warrants are often included in a debt issue to entice investors, and common shares are securities that represent ownership in a corporation. In a statement, MBMI Resources said the funds raised from private investors will be used “to fund ongoing development" of its nickel projects in Palawan province. It said one of the mining firm's investors was Gwynneth Gold Ltd., also a Canadian mining firm. MBMI Resources said it issued 10,558,942 units last week, "subject to a four-month hold" expiring next July. The proceeds of the offering will not only be used to develop MBMI Resources' nickel mineral properties in Palawan but also “for general corporate purposes." the company said. MBMI Resources said its mining agreement with the Philippine government allows the firm “to progress toward development of full-scale operational programs at each [nickel-rich] property." In June last year, MBMI Resources sealed a financial and technical assistance agreement with the Philippine government allowing the mining firm to engage "large-scale exploration, development, and utilization of minerals" in mineral-rich Palawan. The Canadian firm has interests in nine nickel projects covering more than 22,000 hectares of property in the Philippines. MBMI Resources said it intends to supply industrial consumers in Asia with high-grade nickel products. — JE/VS, GMA News