Lepanto raising P1.58B to finance exploration

MANILA, Philippines – Listed Lepanto Consolidated Mining Co. is raising P1.58 billion from an equity sale to finance exploration work and working capital needs.

In an exchange filing yesterday, the company announced that its board approved an offer to shareholders of one share for every 5.5. shares held at P0.20 per share.

The record and offer dates for the equity sale would be announced after the local bourse approves the listing application.

Lepanto said the proceeds of the offer would also be used to settle accounts with suppliers, service providers and related parties.

Lepanto continues to produce gold from its Victoria and Teresa operations in Manyakan, Benguet. It sells the gold to Hong Kong, Canada, Peru and China.

It also has subsidiaries engaged in hauling, diamond drilling services, and insurance. These include Shipside, Inc.; Diamond Drilling Corporation of the Philippines; Lepanto Investment and Development Corporation (LIDC); and Far Southeast Gold Resources, Inc.

Through LIDC, the company fully owns of Diamant Manufacturing and Trading Corporation, a manufacturer of industrial diamond tools for mining exploration, marble cutting and the construction industry.

Lepanto is also pre-developing the Far Southeast Gold Project in Benguet.

The company is still processing the conversion of the mineral production sharing agreement (MPSA) for the project into a Financial or Technical Assistance Agreement (FTAA).

Lepanto would operate the project with its partner Gold Fields Switzerland Holding AG.