Metals Exploration PLC on Friday said it has signed a conditional purchase agreement to buy a controlling interest in Philippines-based Yamang Mineral Corp Group.

The Philippines-focused gold producer said the acquisition is for $1.6 million in cash, as well as the option to subscribe for up to 41 million shares, for a share capital of around 73% of YMC.

YMC holds the exploration tenement Abra, or EXPA-000129, a ‘highly prospective’ exploration licence

covering 16,200 hectares on Luzon, Philippines.

Metals Exploration said the deal includes a ‘drill ready’ target area, as well as ‘numerous areas of historical artisanal mining operations.’

Initial planned exploration work programmes are currently expected to begin in the second half of 2024.

Commenting on the acquisition, Metals Exploration Interim Chair Steven Smith said: ‘The acquisition of the YMC Group is the first step in our progress to a new future for the company. The Abra tenement has the potential to provide an extensive project growth pipeline for MTL, with multiple prospective targets in both gold and copper over a significant area, in a geological region of scale and with historical production. If we have the exploration success we are targeting, we aim to focus on developing a high-grade, smaller-scale gold production-ready project as soon as possible, in addition to advancing our other targets.’

Copyright 2024 Alliance News Ltd. All Rights Reserved.