Manila Mining hikes capital to P1.8B

Manila Mining Corp. has obtained the approval of the Securities and Exchange Commission to raise its capital from P1.2 billion to P1.8 billion, the company told the Philippine Stock Exchange.

The capital increase will pave the way for the company’s planned stock rights offering, which is expected to raise about P895 million.

Proceeds from the rights issue will be used to fund a P200-million drilling program for its mining site in Surigao del Norte and pay off debts.

Shareholders can purchase one share for every two shares held as of Aug. 30, at the price of 1.5 centavos per share.

Manila Mining earlier said it was in talks with foreign mining companies East Asia Minerals Corp. and Anglo-American Plc. for the joint exploration of its Kalayaan mining site in Surigao del Norte.

The old mine site, which was closed down in 1998, has reserves of half-a-million ounces of gold and copper.

Other mining projects of the company include the Anislagan and Macalaya area near Boyongan, Surigao del Norte and the so-called Corridor, which is located north of the Anglo American-Philex deposit.

Manila Mining’s principal activity is the exploration and mining of gold, precious and semi-precious metals, ores, minerals and their by-products. Its products are gold in bullion and copper concentrates.