In the shares-for-asset swap deal, Ramos would surrender at least 78 percent of Vulcan Mining and Industrial and Mining Corp. in exchange for Pagauitan’s East Coast Mineral Resources Co. (ECMRC) which owns the rights to a mining prospect in Surigao.
The deal was signed by Ramos’ son, Vulcan president Adrian Paulino Ramos, and Pagauitan and his wife, HGP president Sofia, on May 14.
Based on the memorandum of understanding, Pagauitan will take over Vulacn’s board, replace its managers, and change its name.
Ramos and Pagauitan agreed to conduct due diligence on Vulcan up to 30 June 2021 to attain “mutual comfort” before entering into a formal contract.
Ramos had previously stripped Vulcan of its oil and gas stakes in preparation for the backdoor listing of his family’s National Bookstore eight years ago. National Bookstore currently owns 59 percent of Vulcan with the balance held by the public.. But the planned backdoor listing was aborted and Ramos has been looking for a buyer of Vulcan as a shell company.
Vulcan surged to a 52-week high of P4.20 on 15 February 2021 on speculation that Ramos was close to finding a buyer for his family’s stake in Vulcan.
Pagauitan’s ECRMC is the holder of an MPSA (mineral production sharing agreement) in Cagdianao, Dinagat Islands, one of five mining sites operated by NAC led by bilyonaryo Manny Zamora.