Benguet takes P500M loan for working capital

Benguet Corp. said Tuesday it was taking out a loan to finance its general working capital.

In a disclosure to the Philippine Stock Exchange, Benguet Corp. said it had signed a P500-million multipurpose omnibus credit facility from Banco de Oro Unibank Group.

Company president and CEO Benjamin Philip G. Romualdez said in a statement that the company would continue the development of its gold tailings reprocessing project.

Romualdez had said in previous disclosures that the company would be focusing on this project in 2012.

The country’s oldest miner will also push through with the expansion of the Acupan gold mine and its Sta.cruz nickel project.

The company is keen on the continuous expansion of the Acupan mine because prices of gold were seen to remain high, estimated at more than $1,500 per ounce in the near term.

Benguet is also currently developing the infrastructure and support facilities required for other mining and exploration projects meant to help expand operations.

Benguet Corp. said it was expecting to end 2011 in the black and sustain profitability next year through its enhanced gold and nickel operations.

The company also said that with bright prospects looming in its horizon, it has been receiving financing offers for its various projects. It also has regained access to the credit markets, it said.