Its wholly-owned subsidiary,Marcventures Mining and Development Corporation (MMDC), performs mining operations in the Municipalities of Cantilan, Carrascal and Madrid in the Province of Surigao del Sur pursuant to Mineral Production Sharing Agreement (MPSA) No. 016-93-XIII covering an area of 4,799 hectares. The primary mineral extracted byMMDC from its MPSA contracted area is nickel ore, which MMDC sells to third parties by direct shipment. MMDCs main market is China; however, recent marketing efforts may allow it to ship nickel ore to new buyers from Japan and other Asian countries. MMDC already performed exploration vvork on 1,659 hectares and mining operations on 82.83 hectares of the area indicated in its MPSA. Based on the latest resource report, MMDC may extract Saprolite and Limonite of 3.2 Million Wet Metric Tons (WlMT) and 62.2 million wmt, respectively of theMeasured and Indicated Nickel Resources with an average grade of 1.9% NI and 11.98% FE for Saprolite and 0.83% NI and 46.02% FE for Limonite.
Prospectively, MHI through MMDC intends to invest in, acquire and/or develop a nickel processing plant or other mining properties to increase its profit margins and grow its business.