DMCI in venture with Rusina for Semirara smelter

DMCI Holdings Inc. on Wednesday said it will be forming a joint venture company with Australian-listed Rusina Mining Ltd that will look into the possibility of putting up a ferro-nickel smelter in Semirara Island. In a statement to the Philippine Stock Exchange, DMCI said the joint venture company will also undertake mining activities as mining properties of the two companies will be transferred to a yet to be formed subsidiary. These include copper and gold projects in Mindanao. DMCI Holdings added that under the joint venture company, Rusina committed to supply ore for five years for the ferro-nickel smelter. In exchange, DMCI Holdings will shoulder Rusina's part the construction of the smelter. The company also said under an agreement that it signed, DMCI will invest $1.2 million in the Australian company in exchange for 3,658,537 shares at 40 cents Australian dollars with an attached option at a strike price of 50 cents Australian dollar in a term of 2 years. "DMCI will formally become the Philippine partner of Rusina in the entire Acoje Project and will initially pay US$ 2.5 million for a 10-percent interest in Acoje, with a first right of refusal on existing claim owner 10 percent residual interest," the company said. - Cheryl Arcibal, GMANews.TV