Abacus assigns gold assets to mining unit

PHILIPPINE DAILY INQUIRER, DECEMBER 31, 2011 BY RIZA T. OLCHONDRA

Abacus Consolidated Resources and Holdings Inc. (ACRHI) said it had assigned its gold mining assets in Agusan del Sur and Surigao del Sur to its fully owned subsidiary as it explores the possibility of partnering with a Chinese group.

In a disclosure to the Philippine Stock Exchange, ACRHI said it had executed with subsidiary Abacus Goldmines Exploration and Development Corp. (Abagold) a deed of assignment of mining rights over gold tenements in exchange for shares of stock of Abagold.

The gold mining rights were valued at more than P290 million pending the final appraisal report by Cuervo Appraisers Inc., ACRHI said.

“The assignment, together with the necessary procedure of estimating and appraising the mining rights, is expected to enable ACRHI to record a book income of about P300 million,” the parent company said.

Under the agreement, Abagold will issue 290 million “new fully paid and non-assessable common shares” with a par value of P1 per share.

The deed will be effective upon notarization, ACRHI said, and is subject to regulatory approval.