Share this page

IFC Investment in Mindoro Resources Supports Responsible Mining in the Philippines

Washington, D.C. / Manila, Philippines, July 14, 2010— IFC, a member of the World Bank Group, today agreed to invest about 2.1 million Canadian dollars in Mindoro Resources Ltd to support a nickel exploration project in the Philippines that is expected to provide jobs and government revenues once a mine is developed.
Mindoro, a Canada-based mining exploration company, will use IFC’s investment for exploration at the Agata nickel project in the Surigao district on Mindanao Island.  IFC will work with the company to ensure that exploration and any subsequent mine development is carried out in an environmentally and socially sustainable manner.
“IFC has a long track record of successfully supporting junior exploration companies around the world and we welcome them as shareholders in Mindoro,” said Jon Dugdale, Mindoro’s CEO.  “We look forward to drawing on IFC’s guidance and expertise to help ensure that progress at Agata follows recognized best practices for the mineral exploration industry, the environment, and for working with local communities.”
The Philippines is seeking to increase investment in the mining sector and use its mineral resources for long-term economic growth.  Mining exploration projects such as Agata have the potential to provide jobs, stimulate local economies, contribute to government revenues, and attract future foreign direct investment when they are developed into mines.
“We are excited to be making IFC’s first mining investment in the Philippines in over twenty years and believe Mindoro has the potential to make the Agata project a success,” said William Bulmer, IFC Global Head for Mining.  “This investment continues our strategy of supporting early stage exploration companies with financing and advice so that countries can maximize the economic benefits of their natural resources.”
IFC offers mining clients in developing countries a broad range of financial and advisory services throughout the mining life cycle.  Through its early equity investment program, IFC assists exploration stage companies such as Mindoro with financing and advice on best practice environmental and social management.
Legal Disclosure about IFC’s Investment
The investment of approximately 2.1 million Canadian dollars in Mindoro will result in IFC acquiring an aggregate of 10,000,000 units. Each unit is composed of one common share and one warrant. Each of the warrants entitles the holder to purchase one common share of Mindoro at an exercise price of 0.31 Canadian dollars per common share for a period of five years.  
The issue price per unit is 0.208 Canadian dollars. It is anticipated that IFC will be subscribing for units in Mindoro along with other investors. It is expected that upon completion of these subscriptions there will be 150,835,647 Mindoro shares outstanding. Immediately upon the closing of these subscriptions, it is expected that IFC will directly hold approximately 6.6 percent of the company’s outstanding share capital and approximately 12.4 percent of the company’s outstanding share capital assuming the exercise of all of IFC’s warrants acquired under this private placement.
The transaction is expected to close by the end of July 2010.
IFC is acquiring the units for investment purposes as described above. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing.  To obtain a copy of the report filed with the Canadian securities regulatory authorities in respect of which this news release relates, please contact Josef Skoldeberg at the phone number or e-mail address referred to above. IFC’s headquarters are located at 2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, U.S.A.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit .