Lepanto eyes P2B from equity deal
Listed Lepanto Consolidated Mining Co. is seeking to raise about P2 billion from a stock rights offering (SRO) to bankroll exploration activities and settle debt.
In a disclosure on Monday, Lepanto said it had downsized the rights offering by 14.3 percent after reducing the offer price from P0.14 per share to P0.12 per share.
According to the mining firm, its board authorized changing the SRO price and other details “in consideration of the present market condition.”
Lepanto has yet to secure the Philippine Stock Exchange’s approval for the fundraising exercise.
The offer shares will come from the increase in the company’s authorized capital stock from P6.64 billion to P9 billion.
Lepanto’s stockholders approved early this year the amendment to its articles of incorporation to reflect the increase in the authorized capital stock.
Proceeds will be used to finance its “exploration/drilling and other capital expenditures, settlement of debts and retirement and other employees benefits.”
In April, Lepanto announced its plan to stage the SRO. Other details of the transaction, such as the start and end of the offer period, are yet to be finalized.
Lepanto booked a net loss of P302.04 million in the first semester, wider than P163.3 million in the same period a year ago.
“Lepanto is presently focusing on gold ore production from its Victoria and Teresa deposits. Exploration drilling is concentrated on targeting extensions of the said deposits,” the firm said in its quarterly report.
