Nadecor to start developing King-king copper, gold mine in 2014

Nationwide Development Corporation (Nadecor) expects to start developing the King-king Copper and Gold Mine project by 2014 after St. Augustine Gold & Copper Limited invested $43.5 million (or P1.9 billion) in the company.

 

"I am delighted that Nadecor has been able to attract significant foreign direct investment into the Philippine mining sector," chairman Ambassador Roberto R. Romulo said in a statement Monday.

 

"We are pleased that we and our partner St. Augustine are making steady progress in the development of this major project, which will generate thousands of new jobs in Compostela Valley," he added.

 

Leocadio Nitorreda, chief operating officer and general counsel, expects to start developments in King-king by 2014 following foreign investments, completion of feasibility studies (social, environmental and engineering phases) and courts favoring the current board of Nadecor.

 

"Tuluy-tuloy ang development sa King-king project. We're trying to advance the project, spend more money for its development," Nitorreda told GMA News Online.

 

Last June 28, St. Augustine — listed on the Toronto Stock Exchange main board — acquired new shares representing 25 percent of Nadecor for $43.5 million. 

 

One of the largest shareholders in St. Augustine is Queensberry Mining and Development Corporation, the resource investment arm of the family of former Senator Manny Villar. 

 

Following its investment of $11 million in May 2013, Queensberry now holds 18 percent of St. Augustine and has the option to increase up to 32 percent its equity in the company.

 

The joint venture partners are expected to publish the Preliminary Feasibility Study which demonstrates the strong viability of the King-king project.

 

"The PFS has been completed, matagal nang tapos ito... but due to internal disputes, we've been witholding it. We're just timing its release," Nitorreda said.

 

He was referring to the Ricafort group — namely Jose G. Ricafort, Corazon H. Ricafort, Jose Manuel H. Ricafort, Marie Grace H. Ricafort, and Maria Teresa Flora Ricafort Santos — which filed with the Regional Trial Court of Pasig City on October 20, 2011 a complaint against Nadecor and sought to nullify the election of the board of directors during the annual stockholders' meeting on August 15, 2011.

 

President Conrado T. Calalang said the February 18, 2013 Court of Appeals (CA) decision is legally binding and immediately effective, and removes any doubt as to who is authorized to represent Nadecor as its board of directors.

 

Calalang noted the administrative complaint the Ricaforts filed against the CA justices who rendered the decision, was dismissed by the Supreme Court by a vote of 15-0 on February 19, 2013.

 

The King-king deposit is a gold rich copper-gold porphyry deposit and is among the top priority projects endorsed by the Mines and Geosciences Bureau.

 

It is one of the world's largest undeveloped copper-gold deposits with a measured and indicated mineral resource of 962 million tons at 0.254 percent copper, and 0.334 grams per ton gold (t/g).

 

Its inferred mineral resources are an additional 188.8 million tons at 0.215 percent copper and 0.265 g/t gold

 

Nadecor said the measured and indicated mineral resource consists of 5.4 billion pounds of copper and 10.3 million troy ounces of gold.

 

In the first five years of operation, King-king is expected to have an average annual production of 267 million pounds of copper at 0.397 percent and 395,000 pounds of gold at 0.597 t/g. — VS, GMA News