Philippine nickel miner pursues $22-mln IPO despite metal slump

MANILA, Oct 15 (Reuters) - Philippine nickel miner TVI
Resource Development (Phils) Inc plans an initial public
offering to raise up to 1 billion pesos ($22 million) to fund a
domestic gold and silver mining project, a preliminary
prospectus showed.
Braving a slump in nickel prices chiefly due to weak demand
from top buyer China, the company, in which Canadian miner TVI
Pacific Inc TVI.TO has an equity interest of about 31 percent,
seeks a Dec. 18 listing on the Philippine Stock Exchange.
The Southeast Asian country, which has 27 nickel mines, was
last year's biggest ore supplier to China's producers of nickel
pig iron, used to make stainless steel, after previous top
supplier Indonesia banned exports of some unprocessed minerals.
TVI Resource is one of two Philippine nickel miners seeking
to raise funds for expansion via share sales. But the timing of
a planned follow-on offer by the second miner, Global
Ferronickel Holdings Inc FNI.PS , remains uncertain amid a drop
of nearly 60 percent in its stock price this year. urn:newsml:reuters.com:*:nL3N10923F
Shares of other Philippine nickel miners have slumped this
year, following stellar performances in 2014, with top ore
producer Nickel Asia Corp NIKL.PS also down more than 50
percent.
Before embarking on nickel mining last year, the 21-year-old
company previously produced copper, gold, silver and zinc at the
now closed Canatuan mine in southern Philippines.
It plans to sell up to 272.02 million shares, representing
10 percent of its projected outstanding common share capital
after the IPO, at an offer price of up to 3.71 pesos per share,
which could raise up to $22 million. A secondary offering of up
to 136.01 million shares could raise $11 million.
Proceeds from the primary offer will finance the company's
Balabag gold and silver project in the southern province of
Zamboanga del Sur. Subject to regulatory approvals, the final
offer price is to be set on Nov 26.