Lepanto Mining eyes P1.75B from stock rights offer

LEPANTO Consolidated Mining Co. plans to raise P1.75 billion via a stock rights offering to fund the further exploration and development of its copper-gold project in Benguet.

In a disclosure to the stock exchange, Lepanto said that its board approved on Monday the offer of one share for every 4.685 shares pegged at P0.15 apiece or a total of 11,678,967,888 shares from the company’s unissued authorized capital.

Funds from the stock rights offer will be used for the exploration and development of the copper-gold project in Mankayan, Benguet, as well as the purchase of mining equipment, and settlement of debt and pension obligations.

The record and offer date will be determined after Lepanto secures the Philippine Stock Exchange’s approval for its listing application.

Lepanto is set to commence drilling this quarter for copper concentrates following a two-year drilling, metallurgical tests, and rehabilitation program of its copper floatation plant.

The plant is also expected to produce gold and silver-bearing copper concentrates while Lepanto’s carbon-in-pulp plant will continue to produce gold.

The firm is aiming to boost output at 1,900 tons per day by year end and 3,000 tons per day by 2019, from the present 1,500 tons per day in both its Victoria mine and gold-copper project.

Lepanto started exploration in October 2015 and has so far completed 41,000 meters of underground drilling to evaluate the copper-gold project resources at the former enargite mining area.

Trading of Lepanto shares dropped 1.53% to P0.193 apiece on Tuesday. —