Atlas Consolidated Mining & Development Corp. (ACMC), the country’s second-largest mining firm, is seeking a $48-million cash infusion from its shareholders for unit Carmen Copper Corp. (CCC), which operates the Toledo copper mine in Cebu.
In a disclosure to the Philippine Stock Exchange, ACMDC said the cash advances from shareholders may be converted into equity at a later time.
“The cash infusions are intended to keep the project rehabilitation momentum going forward while CCC finalizes additional debt financing. Once additional financing is in place, the cash calls from the shareholders will cease,” ACMDC said.
ACMDC said it is finalizing opportunities to fund its share of the cash infusions and is confident CCC can arrange the additional debt financing it requires amid the global financial turmoil that has hobbled mining companies’ ability to secure credit.
Since it resumed operations in July after a 14-year hiatus due to typhoon damage, CCC has produced 2,070 tons of copper concentrate with a grade of 28.36 percent and 275 tons of pyrite concentrate since restarting work at the mine.
The Toledo copper mine is projected to produce up to 130 million pounds of copper, 70,000 ounces of gold, 260,000 ounces of silver, 160,000 dry metric tons (DMT) of pyrite and 440,000 DMT of magnetite concentrates per year.
ACMDC said while the drop in prices of copper has cut operating margins, costs have likewise declined.
“We are evaluating these developments in the light of the troubled global markets with a view to maximizing efficiencies and achieving competitive operating costs and performance,” ACMDC said.