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MANILA - NiHAO Mineral Resources Inc. on Thursday said its board approved an operating agreement with Geogen Corp. for the exploration and development of the latter's contract area in the province of Isabela.
In a disclosure to the Philippine Stock Exchange, NiHAO said the operating agreement will supersede the earlier general contractor agreement, which both parties signed last March.
"The new operating agreement will give NiHAO exclusive right to explore, operate, mine, develop, utilize and process any minerals found within the Geogen's mineral property consisting an aggregate are of 2.391 million hectares," NiHAO said.
NiHAO said it may start building improvements in the contract area -- including the construction and improvements of road networks, facilities, machineries and equipment -- necessary to carry out the exploration and operations of the mine.
Pursuant to the agreement, Geogen will pay NiHAO an amount equivalent to 90 percent of the invoice value of the nickel ore and other nickel by-products sold by the former to third parties.
NiHAO, for its own account, will shoulder AsiaBest Group International Inc.’s fees pursuant to the management agreement with option to buy executed by Geogen and ABC in October 2011.
"NiHAO will also reimburse Geogen for the infrastructure development cost," the company said.
The company's board also approved the capital restructuring of NiHAO, whereby a portion of its P253 million additional paid-in capital will be used and applied to wipe out deficits in 2011.
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