30/11/2011 (BusinessWorld Online Edition) - Brown Co., Inc. has moved to acquire an indirect stake in a Surigao del Sur mine for $5 million.

A Brown, in a discolsure yesterday, said it will be taking over a 22.87% stake in PhiGold Ltd., a holding company incorporated in the Cayman Islands which in turn controls 40% of the voting shares in PhiGold Metallic Ore, Inc., the gold miner behind operations in Surigao del Sur.

Around $2 million of the purchase cost will be paid immediately from available funds, while the remaining balance of $3 million will be paid via internally generated funds within the next two years, the disclosure stated.

Further, A Brown Chairman Walter W. Brown will assume the chairmanship of both PhiGold Metallic Ore and parent firm PhiGold.

A Brown was originally incorporated in 1966 as Bendana, Brown, Pizarro, & Associates, Inc.

At present, it is primarily engaged in real estate development in Cagayan de Oro City, Cainta, Rizal, Valencia City, Bukidnon, and Butuan City.

The firm also operates subsidiaries with interests in oil palm nursery and seedlings distribution, palm oil milling, apartelle operation and real estate brokerage.

The company also holds interests in energy. Last year, A Brown subsidiaries Palm Thermal Consolidated Holdings Corp. and Panay Consolidated Land Holdings Corp. acquired DMCI Concepcion Power Corp. from its parent firm Consunji-led DMCI Power Corp.

A Brown widened its third- quarter net loss to P13.892 million from P10.681 million in year-ago levels due to higher general and administrative expenses and sales costs and a decrease in finance income.

Revenues grew by 66.47% to P120.81 million versus P72.57 million.

Total expenses climbed by 69.57% to P140.93 million from P83.11 million last year.

Trading of A Brown shares, which last surged by 5.80% to P2.19, were suspended yesterday in line with rules concerning acquisitions. The suspension will be lifted once more information on the transaction is released.