United Paragon Mining Corporation (UPM), an idle gold mining firm controlled by the Ramos family, hopes to resolve its negative equity position by March this year as it continues to negotiate with creditors to reduce debt by conversion to equity.

“We are pleased to inform you that we are actively engaged in fruitful ongoing negotiations with our partner, Camarines Minerals, Inc. (CMI) and are making significant headway toward a mutually beneficial resolution,” said UPM President Adrian Paulino S. Ramos in a letter to the Philippine Stock Exchange (PSE).

He noted that “while the process is complex and requires careful consideration of all factors, including the precise mechanics of the debt reduction and conversion, and the participation of all other creditors, we are on track to conclude an agreement by the first quarter of 2025.”

The discussions focus on identifying the liabilities to be converted and reducing the accrued interest while maintaining the required minimum public float.

“We anticipate that this combination will result in a substantial reduction of our outstanding liabilities, effectively bringing UPM’s capital back to positive, as outlined in our earlier commitment," Ramos said, adding that they are "confident that the outcome will be in line with our initial projections and will ensure the continued financial stability and long-term viability of UPM."

He also said, “we anticipate concluding the agreement before March 2025, so that we may include this plan in the agenda for the 2025 annual stockholders’ meeting, and will promptly notify you (PSE) upon finalization.”

UPM was the result of a merger in 1989 between United Asia Resources and Geothermal Corporation (UAR) and Abcar Paragon Mining Corporation, in which UAR became the surviving entity. UAR was then renamed in 1990 as United Paragon Mining Corporation.

The firm’s principal mining operation is the Longos Mine at Paracale, Camarines Norte. The company operated an open pit area in the mine from August 1988 to June 1994, and by April 1994, UPM began the commercial operations of the underground mine at the same site.

However, the mine was placed under care and maintenance in December 1998 because of serious depletion of economic reserves, high operating costs and low metal prices.

In November 2003, the company decided to suspend further drilling in the mine. The company's principal activities since the suspension of the mining and milling operations until 2004 had been exploration and confirmation drilling.

There were no gold and silver recovered in the years 2023, 2022, and 2021 since UPM's mining and milling operations are still suspended.