MANILA - Listed firm Century Peak Metals Holdings Corp. has forged a P2.9-billion investment agreement with the UK-based GEM Group.

Under the deal, the GEM Group will subscribe to Century Peak's shares worth P2 billion. Century Peak has also issued a warrant allowing the UK firm to subscribe to up to P900 million in additional shares over the next 3 years.

The number of shares and the date of subscription of the GEM Group will be decided upon by Century Peak, the company said.

"We are pleased to have entered into this agreement and partner with the GEM Group. Their investment highlights the strong China-Philippines cross border investment opportunities, with Century Peak being one of them," its president Wilfredo Keng told the local bourse on Wednesday.

Proceeds from the agreement will be used for a nickel-chromite smelting plant that Century Peak and China-based Zheijiang Hua Guang are planning to put up in Leyte.

Century Peak has earmarked P7 billion for the nickel smelting plant, which is seen to have a yearly output of 20,000 metric tons.

Share prices of Century Peak closed P6.70 apiece on Wednesday, up 4.6% from their close of P6.50 on Tuesday.