PHILEX MINING STOCK RIGHTS OFFER TO PROCEED NEXT MONTH
Manuel Pangilinan-led Philex Mining Corp. is all set to stage its stock rights offering (SRO) next month as the company ramps up business activity.
In a disclosure to the Philippine Stock Exchange, Philex Mining said it is planning to hold this fundraising activity from July 14 to July 25.
Up to 842 million shares will be offered to the market at a maximum price of P4.81 apiece. The offer price is yet to be determined.
“Please note that the conduct of the SRO and the relevant details, including the timetable, are still subject to regulatory approvals and are not yet final,” it added.
Volatile market conditions earlier forced Philex Mining to shelve its SRO plans, which would enable the listed firm to raise P3.15 billion.
The company announced its decision in April, which was made in consultation with BDO Capital & Investment Corp., the issue manager and lead underwriter for the transaction.
“The mining business is flourishing, with gold and copper prices sustained at higher levels. We will push through with our fundraising, that includes the SRO, to help fund the launching of our Silangan Mine as soon as possible,” Philex Mining public and regulatory affairs head Francis Joseph Ballesteros Jr. told the Inquirer.
Philex Mining intends to jump-start within this year the $224-million Silangan copper-gold project in Surigao del Norte, dubbed one of the largest mining projects in the Philippines.
The first phase of this project involves the development of a starter mine that will produce around 2,000 tons of ore per day, with production to be gradually ramped up until it reaches 12,000 tons a day or 4 million tons a year.
Philex Mining is financing the development of the Silangan mine through a combination of capital infusion, SRO and debt. The company alone is prepared to inject between P2.5 billion and P3.5 billion to start the ball rolling.
Commercial operations are targeted in the first quarter of 2025.
Philex Mining had projected to generate almost $7 billion in sales of metallic minerals throughout the 28-year lifespan of the Silangan project, which covers the Boyongan and Bayugo deposits in Mindanao.