Century Peak Metals Holdings Corporation (CPM) is negotiating for a Memorandum of Agreement (MOA) with Guangdong Province Gold Corporation for joint exploration activities in the Philippines.

In a disclosure to the Philippine Stock Exchange, CPM said its board has authorized the negotiation and execution of the MOA.

Guangdong Province Gold Corporation is a state-owned company duly organized and, existing under the laws of the People's Republic of China. It is primarily engaged in the management of the gold production industry in the Province of Guangdong.

Under the proposed MOA, a Joint Venture Corporation will be established to conduct exploration and drilling activities in the country.

It shall also enter into drilling contracts with CPM's subsidiaries, which contracts shall cover the drilling and exploration of the mining properties of CPM's subsidiaries, including any other mining property that may be acquired in the future.

Global Emerging Markets Limited, a $3.4-billion alternative investment group based in the United Kingdom, is investing a total of P2.9 billion in CPM.

CPM said earlier that it has executed an investment agreement with GEM Global Yield Fund Ltd. and Global Emerging Markets Investment Advisors Inc.

Under the agreement, GEM committed to subscribe to CPM shares worth P2 billion with CPM having the sole and discretionary option of deciding when and how many shares it will want GEM to subscribe.The funding will be used mainly in the Century Hua Guang smelting project, a nickel-chromite smelting plant that CPM is building via a joint venture with the owners of Zheijiang Hua Guan.

Zheijiang is one of China’s top nickel pig iron producers which operates six smelting plants in various provinces in China, said CPM.

Nickel imports into China hit a record high in the recent months, noted CPM adding that it shipped 52,873 metric tons of nickel to China last month.

“We are pleased to have entered into this agreement and partner with the GEM Group. Their investment highlights the strong China-Philippines cross border investment opportunities, CPM being one of them,” CPM president Wilfredo Keng said.

He added that “GEM Globa Yield Fund is a welcome addition as an institutional investor into the company, given their global expertise and proven reputation in capital markets and structured transactions worldwide.”

Keng said CPM is also grateful to AO Capital Partners for having arranged this facility.