Philex sets P2.65 billion stock rights offer

MANILA, Philippines — Pangilinan-led Philex Mining Corp. is planning to raise as much as P2.65 billion as it pegged the final price of its planned stocks right offering (SRO) at P3.15 per share.

Under the planned SRO from July 14 to 25, existing shareholders would be entitled to one offer share for every 5.8674 common shares owned.

The listed mining firm is offering a maximum of 842 million shares that would be listed on the Philippine Stock Exchange (PSE) on Aug. 13.

“The net proceeds will be used by the company for the investment in Silangan Mindanao Mining Co. Inc. through Silangan Mindanao Exploration Co. Inc. for the capital expenditures and development cost of the Silangan Project,” Philex said.

In April, Philex announced it was pushing back the timetable for its planned fund raising activity amid volatility in the financial markets.

The mining firm and BDO Capital & Investment Corp. have agreed to further adjust the timetable of the proposed stock rights offer “to a later date given the current market volatility to help ensure its success.”

Philex chief finance officer and treasurer Romeo Bachoco earlier said part of the $224-million funding needed for the starter mine of the Silangan Copper-Gold project in Surigao del Norte would come from the SRO.

The company 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 four million tons a year by the 12th year of operations.

The mine is targeted to commence commercial operations in the first quarter of 2025.