SEC gives Philex Mining pre-effective OK for SRO

Pangilinan-led Philex Mining Corp. said it received a pre-effective approval letter from the Securities and Exchange Commission (SEC) regarding its stock rights offering (SRO).

In a disclosure to the Philippine Stock Exchange Monday, Philex said it received the letter dated June 23 on Friday.

The company will offer up to 842 million common shares at P3.15 per share subject to its compliance with the conditions prescribed in the preeffective letter.

Last week, Philex Mining said it was planning to raise as much as P2.65 billion from the offering, which is targeted to run from July 14 to 25.

Existing shareholders will be entitled to one offer share for every 5.8674 common shares owned.

“The net proceeds will be used by the company for the investment in Silangan Mindanao Mining Co. Inc. through Silangan Mindanao Exploration Co. Inc. for the capital expenditures and development cost of the Silangan Project,” Philex said.

In April, Philex announced it was pushing back the timetable for its planned fund raising activity amid volatility in the financial markets.

Philex chief finance officer and treasurer Romeo Bachoco earlier said part of the $224-million funding needed for the starter mine of the Silangan Copper-Gold project in Surigao del Norte would come from the SRO.

The company is set to begin the development of the first phase of the Silangan project this year, which will produce around 2,000 tons of ore per day.

This will be ramped up to 12,000 tons a day or four million tons a year by the 12th year of operations. –