Philex raises P12.3B from stock rights offer

By: Riza T. Olchondra, March 13th, 2013 04:30 AM

Philex Mining Corp. disclosed Tuesday that it would raise P12.3 billion from a stock rights offering to repay loans and fund mining activities.

In a disclosure to the Philippine Stock Exchange (PSE), Philex said the net proceeds from the rights offer would be used, among others, to repay loans from the First Pacific Group of Hong Kong, provide working capital, and fund mining exploration costs. First Pacific holds a 31.2-percent interest in Philex.

Among exploration projects, the Silangan and Kalayaan projects will take up much of the funding, Philex corporate secretary Barbara Anne C. Migallos said in the report to the PSE.

In 2012, Philex Mining reported a net loss of P295 million with halted operations at its Padcal copper-gold mine in Benguet.

The Pollution Adjudication Board, however, temporarily lifted the suspension of Padcal for four months.

The copper-gold miner has paid a P1.034-billion fine to government due to a tailings leak at Padcal and faces separate penalties for alleged violations of the Clean Water Act.

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