MANILA, Philippines — Listed Philex Mining Corp. has received the green light from the Securities and Exchange Commission (SEC) for its stock rights offer (SRO) worth as much as P3.15 billion.
In a statement, the SEC said the Commission en banc resolved to render effective the registration statement filed by Philex for an SRO covering up to 842 million common shares, subject to certain remaining requirements.
“The actual number of common shares to be issued will depend on the final offer price,”the SEC said.
Under the SRO, Philex Mining will offer the shares to eligible shareholders for a maximum offer price of P4.81 per share.
Net proceeds from the offer could amount to P3.059 billion.
“Proceeds will be used for the company’s investment in subsidiary Silangan Mindanao Mining Co.’’ Inc. through Silangan Mindanao Exploration Co., Inc. for the capital expenditures and development cost of its Silangan Project, which includes mine development, construction of the mill plant and support facilities, and storage tailings facility,”the SEC said.
The SRO will run from Feb. 28 to March 10, in time for the listing of the offer shares on the Philippine Stock Exchange on March 21, according to the latest timetable submitted by Philex to the SEC.
The company has engaged BDO Capital & Investment Corp. as the issue manager and lead underwriter for the offer.
Philex chief finance officer and treasurer Romeo Bachoco said earlier that part of the $224 million funding needed for the starter mine of the Silangan Copper-Gold project would come from the SRO.
“The SRO will contribute approximately P3.1 billion or $61 million. Philex, out of its cash surplus from its current operations will infuse between $50 million to $60 million – so P2.5 billion to P3 billion will be infused by Philex into the Silangan project,” Bachoco said earlier.
“Any balance that will be left from that SRO and cash infusion through Philex, will be raised through debts,” he said.
Philex Mining is set to begin the development of the first phase of the Silangan project this year, which will produce around 2,000 tons of ore per day.
This will be ramped up to 12,000 tons a day or 4 million tons a year by the 12th year of operations.
The mine is targeted to commence commercial operations in the first quarter of 2025.