US miner St. Augustine to list on PSE for King King project

American miner St. Augustine Gold and Copper Ltd. is going for secondary listing by way of introduction on the Philippine Stock Exchange in the second half of 2014, officials said Monday.

 

"We see the completion of a cross-listing to be completed in the second half of next year," St. Augustine country director Clyde Gillespie told reporters at a briefing. 

 

A partner of Nationwide Development Corporation (Nadecor), St. Augustine is raising money for the $2-billion King King copper-gold project in Davao Region's Compostella Valley. 

 

The Spokane, Washington-based St. Augustine is listed on the Toronto Stock Exchange. 

 

As preparation for the secondary listing on the PSE, Nadecor and St. Augustine agreed to restructure the joint venture deal over King King.

 

Conrado Calalang, Nadecor president, said the boards of directors of both companies approved the restructuring, with Queensberry Mining and Development Corp. – the strategic Philippine partner of St. Augustine also signing the restructuring papers as a show of support.

 

Villar family-led Queensberry Mining holds an 18-percent interest in St. Augustine. 

 

"From a strategic perspective, we believe the new structure increases the attractiveness of the project to potential strategic partners supportive of bringing King King into production as as soon as possible," said St. Augustine CEO Andrew Russell.

 

Under the restructured agreement, St. Augustine will exercise full ownership of a milling company which will mill and process the ore output of King King.

 

"This is a significant development because it moves toward consolidation...We are looking forward to listing on the PSE," said Calalang. 

 

Toronto Stock Exchange will have to approved the latest transaction and St. Augustine shareholders will vote on it during an annual stockholders' meeting on Dec. 16, 2013. 

 

King King, which is expected to start commercial operations in 2015 at the earlier, is estimated to produce 3.1 billion pounds of copper and 5.43 million ounces of gold during its 22-year estimated mine life.  – VS, GMA News