Lepanto eyes stock rights

MANILA, Philippines — Listed Lepanto Consolidated Mining Co. is eyeing to conduct a stock rights offering (SRO) to fund exploration drilling for gold and copper deposits and other working capital.

In a disclosure to the Philippine Stock Exchange (PSE), Lepanto said its board of directors approved an offer to shareholders to subscribe to one share of common stock for every 4.6 shares held at the price of P0.14 per share.

“The proceeds of the offer, amounting to P2.02 billion, will be utilized to fund exploration drilling for gold and copper deposits; settlement of payables; pension update and capital expenditures; and for working capital,” Lepanto said.

The company said it would announce the record and ex-dates as well as the offer period upon the PSE approval of the pertinent listing application.

It said the SRO application has not yet been filed with regulators.

Lepanto said the offer shares would   support the increase in the company’s authorized capital stock from P6.64 billion to P9 billion.

In February, the company said its board of directors approved the increase in the company’s authorized capital stock to P9 billion from P6.64 billion.

“Authorized capital stock will be increased to support exploration, mine development and operations, thus improving production,”it said earlier.

It said the increase in capital stock would boost the company’s ore resource, production and revenues.

In the first nine months of 2021, Lepanto registered higher gold   production at 12,649 ounces (oz) from 12,243 oz in the year before. Silver production also increased to 42,698 oz from 36,177 oz.

The company said the higher production and metal prices caused metal revenue to increase from P1.09 billion to P1.16 billion during review the period.

Consolidated net loss in the three quarters of 2021 stood at P298.3 million, 45 percent lower than last year’s loss of P546.5 million.

“Lepanto is presently focusing on gold production from its Victoria and Teresa deposits,” the company said in its third quarter financial report last year, referring to its mine sites located in Mankayan, Benguet.

It added exploration drilling is concentrated on targeting extensions of the said deposits.

“Meantime, the mill plant and CIP (carbon in pulp) are undergoing rehabilitation to improve gold and silver recoveries and increase throughput. In addition, additional underground mining equipment are being purchased to improve mine output,” it said.