Apollo Global Capital, Inc. (APL) has raised P988 million from its recently concluded follow-on offering (FOO) as it prepares for its offshore mining project in Cagayan, the first of its kind in the country.
In a press statement, APL said the funds would be used mainly for the procurement of equipment and insurance for its magnetite iron mining operations and for the acquisition of a 49-percent stake in its subsidiary, JDVC Resources Corporation.
The Department of Environment and Natural Resources (DENR) has already given JDVC the necessary permits, licenses and certifications to mine within an area of 1,903 hectares in a seabed, located 14 kilometers off the municipality of Gonzaga.
The mine site is said to have a lifespan of 47 years and could yield about 512 million metric tons of mineral deposits. If mineral prices remain bullish, the mine site’s potential value can be over a hundred billion dollars.
The offshore mining project is a joint venture with Kinetic Holdings Corp., led by nickel and restaurant magnate Frank Lao, which will bring in two deep sea mining vessels for the operations.
Magnetite, a kind of iron-oxide mineral, can be used to make steel and is also cost-competitive. China is expected to be the major market for this, especially with its current construction boom.
“Now that this FOO has jumpstarted the company’s quest to commence operations, I hope that all other factors will fall into place because the company’s investors have long awaited and deserve positive developments on this front,”
-PSE president and CEO Ramon Monzon
APL said in its FOO prospectus that operations were slated to begin on or before April 30 next year. This is if the weather permits and all necessary environment protection equipment and offshore mining protection gears are purchased on time.
