Philex moves up SRO

Pangilinan-led Philex Mining Corp. has moved its stock rights offering (SRO) two days earlier starting today.

In a disclosure to the Philippine Stock Exchange yesterday, Philex Mining said the Market and Securities Regulation Department (MSRD) of the Securities and Exchange Commission (SEC) approved its request to move its SRO from July 14 to July 12.

In approving the company’s request, the MSRD said the registration statement for the SRO took effect on June 28. This would mean that the sale of securities should commence within 10 business days from its effectivity, which falls on July 12. The stock rights offer will run until July 25.

The company will offer up to 842 million common shares at P3.15 per share to raise as much as P2.65 billion.

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 Mining said.

In December last year, the company said it would initially spend $224 million for the first phase of the Silangan copper-gold mine in Surigao del Norte.

The $224 million capital expenditure would be funded by a combination of capital infusion, SRO and debt, Philex Mining CFO and treasurer Romeo Bachoco said earlier.

Phase 1 of the Silangan project, which covers the Boyongan deposit, has a mine life of 28 years and will take two and a half years to develop beginning the second quarter of the year.

Philex Mining is targeting to start 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.

Wholly owned subsidiary Silangan Mindanao Mining Co. will operate the mine and gradually develop the project until it reaches 12,000 tons a day or four million tons a year.