By Jenniffer B. Austria

Listed Pacifica Inc. has extended a P50-million loan to Zam-Iron Mining Corp. for the exploration of potential gold, silver and iron deposits in Zamboanga Sibugay province.

Pacifica said it released the loan to enable Zam-Iron explore and develop gold, silver and iron deposits in the towns of Kabasalan and Siay in Zamboanga Sibugay covering 11,056.5 hectares.

“The fund to cover this granted loan was taken from international sources. The proceeds of the loan will be used in accordance with the work program for the exploration, development and utilization of the Kabasalan mining rights,” Pacifica said.

Zam-Iron under the terms of the loan will pay an annual interest rate of 15 percent starting from the date of disbursement.

Pacifica has an option to buy 50 percent of all mineral output from the Kabasalan mining rights over a period of five years.

The agreement also calls for Zam-Iron shareholders to pledge their shares as collateral to the Pacifica loan. Zam-Iron is represented by its president Luisito Flores.

Zam-Iron has filed exploration permit applications covering gold, silver and iron deposits for the Kabasalan mining rights. The permit requires the company to show financial capability to fund the exploration work program.

Pacifica earlier expressed plans to conduct a follow-on offering to fund the acquisition of mine sites in Zambales and Mindanao.

The company recently increased its authorized capital stock to 100 billion shares with a par value of P0.005 per share from 40 billion shares with a par value of P0.005 apiece in preparation for the planned follow-on offering.

Pacific is in the process of acquiring mining rights for nickel and iron ore in Zambales and Mindanao.

The Romero family, through a company called Mikro-Tech Capital Inc., last year acquired a 33.6 percent interest in Pacifica from Strategic Alliance Development Corp.