LISTED miner United Paragon Mining Corp. (UPM) on Friday disclosed that it is currently in talks with Camarines Minerals Inc. (CMI) to address its negative stockholders’ equity and reduce debt.
In a letter to the Philippine Stock Exchange (PSE) dated Dec. 26, 2024, UPM President Adrian Paulino Ramos said his company was “actively engaged in fruitful ongoing negotiations with our partner, Camarines Minerals Inc., and are making significant headway toward a mutually beneficial resolution.”
“While the process is complex and requires careful consideration of all factors, including the precise mechanics of debt reduction and conversion, and the participation of all creditors, we are on track to conclude an agreement by the first quarter of 2025,” he added.
“Specifically, our discussions focus on identifying the liabilities to be converted and reducing the accrued interest while maintaining the required minimum public float. We anticipate that this combination will result in a substantial reduction of our outstanding liabilities, effectively bringing UPM’s capital back to positive, as outlined in our earlier commitment.”
He expressed confidence that the outcome would be in line with UPM’s initial projections and would ensure the continued financial stability and long-term viability of the company.
Ramos said that UPM expected to conclude an agreement with CMI before March 2025 so that the plan can be included in the agenda for its 2025 annual stockholders’ meeting.
The company reported no operating income as of end-September 2024 while its net loss had widened to P80.9 million from P71.7 million the year before.
Total liabilities rose to P1.6 billion as of end-September from P1.52 billion as of the end of 2023.
UPM shares last traded at P0.0034 each on Dec. 20, 2024.
EARL JOHN ALFARO
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