Felipe U. Yap is infusing P502.5 million in fresh capital into Lepanto Consolidated Mining Corp., part of which will be used to bring forward to development the $2-billion Far South East (FSE) gold and copper project in Benguet.
In a report to the Philippine Stock Exchange, Lepanto vice president Odette A. Javier said the mining firm was issuing 3.35 million common shares at 15 centavos each to Yapster e-Trade Inc.
Yapster, where Yap serves as chair same as in Lepanto, “will take up the private placement share, subject to a two-year lock-up period,” Javier said.
She said proceeds from the private placement will be used for further exploration and initial development of the FSE project, and settlement of outstanding debt.
She said the new project was adjacent to the Victoria gold project, and Lepanto had drilled over 35 kilometers in the area.
“Drilling continues to increase the resource/reserve with a view to completing a bankable feasibility study as soon as possible,” Javier said.
In July 2016, the Chamber of Mines of the Philippines said there were 11 projects that were expected to start operation by 2019 and which account for $23 billion or about P1 trillion in investments.
These include the FSE project, the deposit in which was discovered in 1980.