SAGC seeks funds for $2-B King-king mine dev’t project

Proponents of the $2-billion King-king gold and copper project in Compostela Valley remain bullish on securing financing for the planned mine development despite Environment Secretary Regina Lopez’s pronouncements against allowing new operations.

St. Augustine Gold and Copper Ltd. (SAGC), the partner of King-king operator Nationwide Development Corp. (Nadecor), Tuesday reiterated that the recent renewal of the mineral production sharing agreement (MPSA) boosted ongoing efforts “to advance and de-risk” the project.

Hong Kong-based SAGC is controlled by the group of companies of former Sen. Manny Villar, a major ally of President Duterte.

However, Lopez has ordered a new round of audit of all mining companies to weed out those violating environmental regulations. She has also vowed that no permits would be issued to new mines.

The ongoing audit has so far resulted in the suspension of activities of 10 projects.

“With King-king now fully permitted, we have considerably strengthened our ability to secure financing and proceed and next phase of King-King’s development, including the completion of a feasibility study,” SAGC president and chief executive Paolo A. Villar said in a statement.

Villar said SAGC was training its sights on  structuring financing arrangements with strategic parties and major financial institutions; moving forward to other permitting-related efforts; continuing efforts to re-classify King-king project lands for industrial use; and advancing critical work needed “to bring the King-king project to a more advanced stage,” including the feasibility study mentioned.