MANILA, Philippines — A wholly owned subsidiary of Pangilinan-led Philex Mining Corp. has secured an additional $70 million funding for the development and operation of its Silangan mine project in Surigao del Norte.

In a disclosure to the Philippine Stock Exchange, Philex said its Silangan Mindanao Mining Co. Inc. recently signed a deed of accession for additional $70 million with additional lenders who syndicated the credit facility.

The additional lenders were SB Capital Investment Corp., the mandated lead arranger, and the Philippine National Bank, Philippine Bank of Communications and Security Bank Corp., which were joint lead arrangers for the credit facility.

With the latest fund raising, Silangan has completed its total loan facility of $170 million necessary to ensure that the mine project would start commercial operations by the first quarter of 2025, according to Philex.

Philex secured a $100 million syndicated debt facility with various lenders in 2023 for the Silangan mine project.

The creditors were Union Bank of the Philippines, Security Bank, Bank of the Philippine Islands and BDO Capital and Investments Corp.

“Development works continue in the Silangan Project with the ongoing underground decline development now midway to the Boyongan ore body,” the mining firm said.

Philex added that initial works have begun at the tailing storage facilities while the procurement process for the various packages of the processing plant is ongoing.

Silangan has also awarded the packages of some of its long lead items needed for the processing plant to various global suppliers, according to Philex.

The company earlier said the initial capital cost to develop the starter mine is around $224 million, which would be financed by a combination of capital infusion from the company, equity via stock rights offer (SRO) and debt.

Philex raised P2.6 billion in 2023 by offering shares to existing stockholders that was used to bankroll the commencement of the development of Phase 1 of the Silangan project.

The Phase 1 of the Silangan project has an estimated mine life of 28 years based on its declared mineable reserves of 81 million metric tons, resulting in a recoverable copper of 993 million pounds and 2.8 million ounces of gold.

The Silangan copper and gold project is being touted as one of the Big Three mining projects in the country.