Photo by: Bloomberg
TORONTO (miningweekly.com) – Mindoro Resources, which has four joint venture (JV) agreements with TVI Pacific to develop nickel/iron projects in the Philippines, on Wednesday announced that it had applied to delist from the ASX.
The Edmonton, Alberta-based firm said its decision to delist was based on the low trading volume of its CHESS Depositary Interests (CDIs) on the ASX, compared with common shares on the TSX-V.
During 2013, trading on the ASX represented just 6% of Mindoro's total yearly trading activity. As a result, Mindoro had determined that sustaining the administrative and compliance costs of the ASX listing, including the higher level of regulatory compliance costs associated with two listings, were no longer justifiable.
The ASX had already approved the delisting in principle, subject to Mindoro complying with certain conditions, such as communicating to shareholders how they could exchange CDIs for TSX-V-listed shares or how to dispose of the CDIs.
After delisting from the ASX, which is expected to take place on June 30, Mindoro's shares would continue to trade on the TSX-V.
Last month, TVI Pacific and Mindoro received a declaration of mining project feasibility (DMPF) and clearance to develop a port for the Agata direct-shipping iron-ore project, located in Agusan del Norte, Mindanao, the Philippines, clearing the way for site development to start.
The Agata Mining JV said that the DMPF authorised it to proceed to development, including the mining and sale of iron, nickel and other associated minerals in the contract area.
The Agata project is a JV of TVI Pacific and 75% owner Mindoro.
Shipping of the high-iron laterite is expected to start in the third quarter, subject to receiving the remaining port approvals and financing. The Agata project will require a capital investment of about $10.1-million.