SEC clears Philex’s P2.65-B share sale
The Securities and Exchange Commission (SEC) has conditionally approved a P2.65-billion stock rights offering (SRO) planned by Manuel Pangilinan-led Philex Mining Corp. to raise funds for its Silangan copper-gold project in Surigao del Norte.
In a disclosure to the Philippine Stock Exchange, Philex Mining said it received from the SEC the pre-effective letter that cleared its offering of up to 842 million common shares for P3.15 apiece.
Under this SRO, which will run from July 14 to July 25, existing shareholders are entitled to buy one share for every 5.8674 common shares owned.
This is subject to Philex Mining’s compliance with the conditions set forth by the SEC in the pre-effective letter.
“The pre-effective letter is without prejudice to the prerogative of the SEC to act later against the Company, if warranted, to ensure full compliance with the provisions of the Securities Regulation Code, its Implementing Rules and Regulations, as well as PD (Presidential Decree) 129, as amended, and the Omnibus Rules and Regulations for Investment House and Universal Bank Registered as Underwriters of Securities,” it added.
Philex Mining originally planned to stage its SRO early this year but volatile market conditions forced the company to put it off.
Just last week, the listed firm announced that the fundraising activity would proceed on the back of the thriving mining business, with gold and copper prices reaching higher levels.
Proceeds from this transaction will be set aside for the development of the $224-million Silangan copper-gold project in Surigao del Norte.
The first phase of the Silangan project, which will begin this year, will initially produce around 2,000 tons of ore per day. Production will be gradually ramped up until it reaches 12,000 tons a day or 4 million tons a year.
Commercial operations of the mine site, touted as one of the biggest mining projects in the Philippines, are targeted in the first quarter of 2025.
Philex Mining will fund this project through capital infusion, SRO and debt. It is prepared to invest around P2.5 billion to P3.5 billion to jump-start the project. INQ