LONDON (Alliance News) - Copper Development Corp on Wednesday said it has agreed the sale of its Philippines operating subsidiary and said the move will mean it will turn itself into an investing company.
Copper Development said it will sell CDC Philippines Holdings Ltd, its wholly-owned subsidiary in the country, for USD500,000 in cash. The subsidiary owns a 93% stake in the Hinoba-an copper project, which was the original asset on Copper Development's books when it floated in London in December 2010.
It has sold off the asset due to the continued fall in the copper price and the resulting impact on the economics of the project. By disposing of the asset, the company said it can focus on other investments and will no longer have to inject money into the Hinoba-an project.
As a result of the sale, Copper Development will become an investing company, meaning it will now be required to make an acquisition or undertake a reverse takeover within 12 months of the upcoming meeting at which it shareholders will vote on the change of its make-up. The meeting will be held on October 5.
In conjunction with the change, the company said it has proposed the appointment of Jim Mellon to its board as a non-executive director. Mellon is an entrepreneur with interest in a number of sectors. He holds chairmanships with Manx Financial Group PLC, the Isle of Man-based financial services company, pharmaceutical firm Plethora Solutions Holdings PLC and biopharma investments firm Port Erin Biopharma Investments Ltd, all of which are listed on AIM.
Mellon also has non-executive roles on the boards of Condor Gold PLC, West African Minerals Corp, Kuala Innovations Ltd and 3Legs Resources PLC, all of which also are London listed.
Copper Development shares were up 19% on the news to 2.0 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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