Apex Mining secures $108-million loan from two banks

Apex Mining Co., Inc. of the Razon Group secured a $108 million (around P6.4 billion) loan from Philippine National Bank and Bank of Commerce to close the acquisition of mining interests in Davao de Oro.

The omnibus loan and security agreement signed between Apex Mining and two banks would convert the listed firm’s existing short-term borrowings with Bank of Commerce into a long-term loan and finance the remaining payments for acquiring 100 percent shares in Asia Alliance Mining Resources Corp. (Aamrc).

In a disclosure on Thursday, the mining company said the loan would be drawn in three tranches until 2026 and repaid quarterly for five years from the drawdown dates.

READ: Apex Mining profit jumps 33% on high metal prices

Apex Mining completed the acquisition of Aamrc valued at $81.5 million in February last year, which would allow it to expand its mining operations in Maco town in Davao de Oro.

The firm previously said the deal enables them to mine future gold resources as the extensions of existing mining veins spill over to the adjacent tenement, giving its exploration team new ground to drill and validate.

Last month, Apex Mining said Aamrc was on track with drilling and exploration works in its Amacan and Hijo projects in the province.

Both projects are under Aamrc which was acquired through an agreement with the Philippine Mining Development Corp., a government corporation tasked to develop idle mining assets.

Based on Apex Mining’s third-quarter financial report, Aamrc has copper mines and mining claims covering 19,135 hectares situated in the towns of Mabini, Maco and Maragusan in Davao de Oro.

Apex Mining reported a net income attributable to equity holders of the parent company of P3.07 billion in the nine-month period ending September, an increase of 33 percent.

Revenues from the sale of gold and silver rose by 24 percent to P10.84 billion from P8.73 billion.

Apex Mining president and CEO Luis Sarmiento said the listed firm’s “good performance” was attributed to “higher tonnes milled and the surge in gold prices.”

The executive said the company was optimistic about their financial performance for the remainder of this year barring any more natural calamities that could affect operations.