The Securities and Exchange Commission (SEC) has cleared a stock rights offering of as much as P3.15 billion planned by Philex Mining Corp., which seeks to fund the development of its Silangan mine.
In a meeting on Jan. 27, the SEC approved the registration statement filed by Philex Mining, albeit still subject to certain requirements, for the offering of up to 842 million common shares to existing shareholders.
The actual number of common shares to be issued will depend on the final offer price. Philex Mining will offer the shares to eligible shareholders for a maximum offer price of P4.81 per share.
Net proceeds will be invested in subsidiary, Silangan Mindanao Mining Co. Inc. through Silangan Mindanao Exploration Co. Inc. for the capital expenditures and development cost of its Silangan project, which includes mine development and construction of a mill plant, support facilities and storage tailings facility.
Subject to further approval by the Philippine Stock Exchange, Philex intends to run its stock rights offering from Feb. 28 to March 10, in time for the listing of the shares on the local bourse on March 21.
The company has engaged BDO Capital & Investment Corp. as the issue manager and lead underwriter for the offer.