Global Ferronickel raises P130M from sale of treasury shares
GLOBAL FERRONICKEL Holdings, Inc. (FNI) has sold 51.90 million of its treasury shares at P2.50 each, the nickel ore producer said, in an offering that raised about P129.74 million.
“The company aimed to generate funds for general corporate purposes,” the listed mining company said in a disclosure on Tuesday.
FNI said that its board of directors approved the sale equivalent to 1% of its outstanding shares of 5.24 billion. It sold the shares in the market on April 28.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that FNI may use the proceeds to grow the company and as a result, affect its income positively.
Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said the generated funds can be used for general corporate purposes such as funding capital expenditures, paying off debt, or financing new projects.
For a mining company, the funds can help finance its operations, exploration activities, or any other related projects, he said.
“FNI will be able to increase its production capacity, which can increase its revenues and income,” Mr. Arce said.
Last week, FNI’s subsidiary Platinum Groups Metal Corp. started the first shipment of 55,300 wet metric tons of nickel ore to China for the mining season this year.
On Tuesday, Global Ferronickel shares went down two centavos or 0.8% to P2.43 each. — Sheldeen Joy Talavera
