PHILEX GETS PSE NOD FOR P2.65B STOCK RIGHTS OFFER, DEV’T OF SILANGAN COPPER-GOLD MINE UNDERWAY
The Philippine Stock Exchange has approved the plan to Philex Mining Corp. to issue P2.65 billion worth of shares to existing shareholders to shore up funds to jumpstart the development of the Silangan mine in Surigao del Norte.
One of the country’s oldest and largest copper and gold producers, Philex Mining Corp. will sell up to 842 million shares to shareholders at a price of P3.15 per share.
Stockholders can buy one share for every 5.8674 shares held as of June 29. The offer period will run from July 14 to 25.
The PSE’s approval of the listing of the rights shares is subject to the company’s compliance with all applicable requirements and post-approval conditions of the exchange.
Dubbed on the biggest mining projects in the Philippines, the $224 million Silangan copper-gold project will require an initial capital of between P2.5 billion and P3.5 billion to get it started. The first phase of the project involves the development of a starter mine with a capacity of 2,000 tons of ore per day. Production is expected to reach 12,000 tons a day or four million tons a year.
Philex expects to generate nearly $7 billion in sales throughout the 28-year lifespan of the Silangan mine project, which covers the Bayugo and Boyongan deposits in Mindanao.
The Silangan mine is targeted to be operational by the first quarter of 2025.