The Securities and Exchange Commission (SEC) has approved the plan of Philex Mining Corp. to raise as much as P3.15 billion from a stock rights offering
Philex will offer up to 842 million common shares to eligible shareholders for a maximum offer price of P4.81 per share from February 28 to March 10.
Net proceeds from the offer, amounting to P3.059 billion will be used to jumpstart the development of the Silangan mine in Surigao del Norte.
The shares will be listed on the Philippine Stock Exchange on March 21, according to the latest timetable submitted by Philex to the SEC.
BDO Capital & Investment Corp. is the issue manager and lead underwriter for the offer.
The mine, which is estimated to have a mining life of up to 28 years, is expected to produce up to four million tonnes per year of high grade copper and gold ores or 12,000 tonnes per day.
Philex will need an initial $224 million to develop the project in two-and-a-half years.
The in-phase plan consists of a starter sub-level cave mine that has an annual ore production of 700,000 tonnes or 2,000 tonnes per day. Mining will commence at the east sub-level cave because it has the highest grade ore.