Item
1.01. Entry Into a Material Definitive Agreement.
On
February 22, 2022, PHI Group, Inc. (the “Registrant”) entered into a Business Cooperation Agreement with Siennalyn Gold Mining
Corporation, a Philippine company with principal address at 19 Quezon Street, Del Rey Ville 1, Baesa, Quezon City, Philippines (“SGMC”),
represented by Ms. Fe Melchora B. Alam, its Chairman, President and Chief Executive Officer, in order to cooperate with other to finance,
develop, mine and process the mineral assets under the Mineral Production Sharing Agreement (MPSA) denominated as 076-97-IX granted by
the Philippine Government through the Department of Environment and Natural Resources (DENR) – Mines and Geosciences Bureau (MGB)
to Siennalyn Gold Mining Corporation, which covers 4,116 hectares contract area situated in the Municipalities of RT Lim, Ipil and Tinay
of the Province of Zamboanga Sibugay, Republic of Philippines.
The
Mineral Resource Estimates under the afore-mentioned MPSA are as follows:
Gold
It
has been delineated and estimated that approximately 500,000 ounces of gold deposits exist in the SGMC MPSA area, particularly in the
Sto. Rosario prospect and Nanao prospect of the area.
Copper
Based
on the Technical Report (NI-43-101) prepared by Geologist Gregorio S. Hutalle, Jr., the mineral resource for copper is as follows:
Mineral Resource Classification | |
Tonnage | | |
Ave. Grade, % Cu | | |
Cut-off, % Cu | |
| Inferred | |
| 38,903,916 | | |
| 1.79 | | |
| 0.01 | |
| Indicated | |
| 13,007,880 | | |
| 0.56 | | |
| 0.06 | |
| Measured | |
| 18,295,024 | | |
| 0.50 | | |
| 0.10 | |
| Total Indicated + Measured | |
| 31,302,904 | | |
| 0.52 | | |
| | |
| OVERALL TOTAL | |
| 70,206,820 | | |
| 1.22 | | |
| | |
| Commodity | |
Estimated Geological Resource | |
Unit Amount | |
Gross Value (USD) | |
| Copper | |
854,000 tons | |
4,641 USD per metric ton | |
| 3,963,414,000 | |
Gold Equivalent
from Copper | |
1,530,500 ounces | |
1,323 USD per troy ounce | |
| 2,024,851,500 | |
| Gold | |
500,000 ounces | |
1,323 USD per troy ounce | |
| 661,500,000 | |
| OVERALL TOTAL | |
| |
| |
| 6,649,765,500 | |
Notes:
1.
Copper Geological Resource is based on TVI drilling results.
2.
Gold Equivalent is 0.68-gram Au per ton of the 70,000,000 tons copper ore.
3.
Gold Geological Resource is based on PPEPI drilling results.
According
to the Business Cooperation Agreement, PHI Group, Inc. will be responsible for arranging up to one billion U.S. dollars for SGMC to execute
its business plan and assist SGMC to develop, mine and process the mineral assets under the MPSA grant. The actual amount of financing,
terms and conditions shall be reasonable and acceptable to SGMC and will be negotiated and agreed by SGMC and the financier prior to
execution.
PHI
Group, Inc. will provide assistance to SGMC in the execution of its business plan, including but not limited to corporate governance,
financial, technical and other pertinent matters as needed and will assist SGMC in its future listing on an international stock exchange
such as New York Stock Exchange or the Nasdaq Stock Markets.
American
Pacific Resources, Inc., a wholly-owned subsidiary of PHI Group, Inc. will be entitled to thirty percent (30%) profit sharing in SGMC
for a period of twenty-five years or based on the lifespan of the MPSA, upon the success of the financing arrangement mentioned herein.
This
Business Cooperation Agreement will be effective upon signing and for a period of one year from the date hereof and shall terminate unless
extended in writing by the Parties.
The
foregoing description of the Business Cooperation Agreement by and between the Company and Siennalyn Gold Mining Corporation is qualified
in its entirety by reference to the full text of said Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and
incorporated herein by reference. The Company issued a press release on February 23, 2022 regarding entry into the Business Cooperation
Agreement, which is attached as Exhibit 99.1.