Manila Mining mulls sale of stake in copper-gold project to Philex Mining

MANILA, Philippines - Manila Mining Corp. said yesterday it remains in talks with Philex Mining Corp. over the possible sale of a portion of its stake in the Kalayaan copper-gold project.

“Manila Mining and Philex are in continuing discussions regarding the Kalayaan project,” Manila Mining said in a disclosure to the Philippine Stock Exchange.

Stock market punters are speculating that Manila Mining and Philex are close to finalizing an agreement for the acquisition by the latter of a 60 percent stake in Manila Mining’s Kalayaan project.

The 2,463-hectare Kalayaan mine is adjacent to Philex’s Boyongan mine in Agusan and Surigao.

Philex acquired full ownership of the Boyongan copper-gold project in Surigao del Norte after buying the 50-percent stake of Anglo American Exploration BV and Anglo American Exploration (Philippines) Inc. for $55 million.

Manila Mining has two existing mining lease contracts with the government in Surigao del Norte and three mineral production sharing agreements covering Surigao del Norte and Agusan del Norte. Its wholly-owned subsidiary, Kalayaan Copper-Gold Resources Inc., operates the mine site.

Manila Mining started mining operations in Placer, Surigao del Norte in 1981 and produced gold bullion through a carbon-in-pulp plant until 2001. It produced copper concentrates (containing gold, silver and copper) from a copper flotation plant until July 2001, when it suspended mining and milling operations after its authority to operate its tailings dam expired.

Philex, meanwhile, owns and runs the Padcal mine in Benguet province, the only remaining gold-copper company operating in the country.