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MANILA, Philippines - A Chinese company is investing in Philippine-listed Vulcan Industrial and Mining Corp.
Vulcan told the local bourse that Modern Overseas Investment Ltd., a unit of Hong Kong-based China Trend, agreed to subscribe to half of the Philippine company's P900 million share sale.
William Chan Wai Keung, owner of China Trend, will subscribe to the other half through Philippine-based Cerberus Corp.
Modern Overseas and Cerberus have 90 days to complete the required documentation and approvals.
Chan pledged to invest $7 billion in Philippine mining, property and other businesses during President Benigno Aquino III's state visit to China.
China Trend has since completed its due diligence of Vulcan and opted to make a private placement instead of direct investments in its mining projects, the Philippine firm said.
In September 2011, Vulcan, along with unit Vulcan Materials Corp., signed a memorandum of understanding (MOU) with China Trend for possible joint development of mining projects.
Under the MOU, China Trend is allowed to review Vulcan's existing mining exploration projects in preparation for an agreement to develop the chosen projects.
Vulcan was supposed to receive $1 million and up to P500 million in advances against royalties.
Besides mining and mineral explorations, Vulcan has taken part in oil exploration projects since 1976. Vulcan Materials is into quarrying, crushing and marketing of rock aggregates.
Vulcan's mining projects include the Marian gold-copper project covering the provinces of Nueva Vizcaya and Isabela, the Isabela Dimakawal copper-gold project, the Leyte Pinut-an gold project, and Leyte Panaon gold project.
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