April 29, 2014

MARC refutes MGB findings, requests for shares trading halt

The Philippine Daily Inquirer today reported that Marcventures Holdings Inc (MARC) is refuting the allegations that led to a suspension of its mining operations by the Mines and Geosciences Bureau (MGB). It has also requested the Philippine Stock Exchange for a trading suspension of its shares (MARC shares are still trading as of press time).

The MGB last Friday reportedly suspended the operations of MARC after concluding that the mining company is allegedly operating outside of its mining tenement, engaged in unsystematic mining operations and has caused siltation in a nearby river. MARC protested the suspension order, arguing that it was authorized to extract minerals in the disputed area. It said that the later was covered by the environmental compliance certificate pertaining to its original 120 hectares and the expanded 4,799-hectare mining claims.

It also further argued that it obtained all the valid permits, including the mineral ore export and transport permits that clearly identified the sources of the mineral ore, that covered the town which the MGB said is outside of its mining claims. The company reportedly said that it will pursue all remedies to protect its interests.

Our take: It remains to be seen how soon the company can address and settle the dispute with the MGB. Until then, the uncertainty surrounding its operations may continue to weigh on market sentiment on its shares.– WealthSec