Gold and copper producer Philex Mining Corp. is raising P2.65 billion from a planned stock rights offering.

Philex, according to the final terms of the offering, will sell 842 million common shares at P3.15 each, an 18 percent discount of the stock’s closing price of P3.83 on Thursday.

Philex shareholders of record as of June 29 will be entitled to subscribe to one share for every 5.8674 common shares owned. The offering period will start from July 14 to July 25. The company will list and trade the shares on Aug 3.

Philex said it would invest the net proceeds to fund the capital expenditures of unit Silangan Mindanao Mining Co. Inc. through Silangan Mindanao Exploration Co. Inc. in developing the gold and copper mine in Surigao del Norte. The investment includes mine development and the construction of a mill plant, support facilities and storage tailings facility.

Philex is currently developing Silangan mine, which has an estimated mineable reserves of 81 million tons.

The Silangan project, which covers the Boyongan and Bayugo deposits, will initially mine 2,000 tons of ore a day. Philex will gradually increase the production rate until it reaches 12,000 tons a day or four million tons a year.

Philex is scheduled to begin the development of the first phase of the Silangan project this year. It plans to start commercial operations in 2025.

The mining firm earlier said it would initially need P11.2 billion to jumpstart the project.

Aside from the rights offering, Philex plans to inject between $50 million and $60 million in fresh capital directly into the Silangan mine and borrow from local banks to fund the initial phase.

Philex remains positive about the company’s finance performance in 2022 as the current global commodity outlook points to sustained prices of gold and copper in the near to medium term periods.

“These sustained metal prices provide the company with the ability to implement exploration and studies geared towards funding additional mineral resources/reserves within the current ore body and vicinity of the Padcal Mine,” said Philex.