Puregold's Lucio Co boosts stake in Alcorn Gold

By Zinnia B. Dela Peña 

(The Philippine Star) 

MANILA, Philippines - Puregold owner Lucio Co has acquired an additional stake in publicly-listed Alcorn Gold Resources Corp. (AGRC), fuelling speculations he may eventually take over the oil and gas exploration firm to gain a backdoor listing in the stock exchange.

In a disclosure to the Philippine Stock Exchange yesterday, AGRC said Co subscribed to a quarter or P575 million of the firm’s latest increase in capital stock from P700 million to P3 billion.

It said Co has already made a downpayment of P143.75 million for the 57.5 billion shares acquired. Prior to the subscription, Co owned 7.38 percent of AGRC.

AGRC was the market’s second top gainer yesterday, rising 37.5 percent to close at a record high P0.011 each share. A total of 1.676 billion shares worth P16.98 million changed hands.

Investors gobbled up the shares of the company on rumors Co might infuse his Puregold supermarket chain into AGRC as a means to obtain a backdoor listing on the local bourse.

In an earlier filing with securities regulators, AGRC said it was studying its possible participation in other industries and projects that are compatible with its long-term plans and funding position. If necessary, the company would use additional capital to finance exploration activities and maintenance of its various concession areas as well as to support general and administrative requirements.

AGRC, as a holding company, may engage in any business that may add to its shareholders’ worth, it added.

As of end-December 2009, AGRC had a cash position of P225.486 million, which is sufficient to support its operations and project commitments for the next 12 months. Read more...