Philex Mining Corp., led by Manuel Pangilinan, is set to stage its stock rights offering (SRO) next month as the company ramps up trading activities.
In a statement to the Philippine Stock Exchange, Philex Mining said it plans to hold the fundraising activity from July 14-25.
Up to 842 million shares will be offered to the market at a maximum price of P4.81 each. The offer price is yet to be determined.
“Please note that the conduct of the SRO and relevant details, including timing, are still subject to regulatory approvals and are not yet final,” he added.
Volatile market conditions forced Philex Mining to suspend its SRO plans, which would allow the listed company to raise 3.15 billion pesos.
The company announced its decision in April, which was made in consultation with BDO Capital & Investment Corp., the issue manager and lead underwriter of the transaction.
“The mining sector is booming, with gold and copper prices holding at higher levels. We will continue our fundraising, which includes ORS, to help fund the launch of our Silangan mine as soon as possible,” Francis Joseph Ballesteros Jr., public and regulatory affairs manager for Philex Mining, told the Inquirer.
Philex Mining intends to start the $224 million Silangan copper-gold project in Surigao del Norte, dubbed one of the largest mining projects in the Philippines, this year.
The first phase of this project concerns the development of a start-up mine which will produce approximately 2,000 tonnes of ore per day, with production to be gradually increased to reach 12,000 tonnes per day or 4 million tonnes per year.
Philex Mining is financing the development of the Silangan mine through a combination of capital injection, ORS and debt. The company alone is ready to inject between 2.5 and 3.5 billion pesos to get the ball rolling.
Commercial operations are targeted for the first quarter of 2025.
Philex Mining had expected to generate nearly $7 billion in metallic mineral sales over the 28-year life of the Silangan project, which covers the Boyongan and Bayugo deposits in Mindanao.
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