Silangan Mindanao Mining Co. Inc., a wholly-owned subsidiary of Philex Mining Corporation, signed a $100-million syndicated debt facility to fund its ongoing mine development program.

In a disclosure to the Philippine Stock Exchange (PSE), Philex said the lenders are Union Bank of the Philippines, Security Bank Corporation and Bank of the Philippine Islands, and BDO Capital and Investment Corporation as lead arranger.

According to Philex President and CEO Eulalio B. Austin Jr., the signing of the OLSA for the $100 million debt facility is another positive milestone to support the ongoing development of the Silangan Project.

He noted that all these would not have been made possible without the favorable climate for mining that the government had created.

“Our Stock Rights Offer (SRO) last year raised net proceeds of P2.6 billion,” according to Philex Senior Vice-president and Chief Finance Officer Romeo B. Bachoco. 

He added that they “used the proceeds to commence the development of Phase 1 of the Project. Phase 1 of the Silangan Project, which covers the Boyongan Ore Deposit, has an estimated mine life of 28 years based on our declared Mineable Reserves of 81 million tons at 0.67 percent copper and 1.13 grams per ton of gold, containing an estimated recoverable copper of 993 million pounds and 2.8 million ounces of gold.”

Development works continue in the Silangan Project with the ongoing underground tunneling works, passing the 210 meters mark or about 35percent of the distance towards the ore body. 

Clearing works and access road to the Tailings Storage Facility (TSF) area are nearing completion with the issuance of the permit by the Municipality of Sison, Surigao del Norte for the construction of the TSF. 

Management is in the final stages of evaluating the proposals and is set to award the contract for the Tailings Storage Facility as well as for the process plant under an Engineering, Procurement, Construction Management arrangement. – James A. Loyola