Philex Mining Corp. said it will soon finalize the funding requirements for the development of the Silangan gold and copper mine in Surigao del Norte.

“We are now almost done securing the whole funding of the project which includes financing from the Philex SRO (stock rights offering), project financing debt syndication of Silangan, additional cash infusion from Philex cash reserves,” said Eulalio Austin Jr., Philex Mining president and chief executive officer, at the company’s annual stockholders’ meeting conducted virtually yesterday.

Philex Mining completed its SRO in August last year to develop a starter mine for Silangan and have its commercial operations by early 2025.

“For the debt syndication component of the funding plan, we are in the final stages of the negotiations and we expect to complete the syndication process in due time. In the meantime, we are proceeding with the major development works of the project on the ground that include the completion of the box cut portal and commencement of tunneling works. This is with the objective and plan to start commercial operations in January 2025,” Austin added.

The company earlier said $224 million is needed to develop the starter mine that will produce around 2,000 tons of ore per day that will be ramped up to 12,000 tons per day by the 12th year of its operation.

Last year, Philex Mining recorded a 31.6 percent decline in its core net income as it only reached P1.73 billion against 2021’s P2.53 billion.

For the similar period, Philex Mining also recorded a 5.5 percent drop in revenues at P9.26 billion last year from 2021’s P9.8 billion.

The company attributed the dismal performance to higher operating cost and expenses for the period as well as lower ore tonnage.