MANILA, Philippines — A wholly owned subsidiary of Pangilinan-led Philex Mining Corp., has entered into a $100 million syndicated debt facility for the development of the Silangan mine project in Surigao del Norte.
In a disclosure to the Philippine Stock Exchange yesterday, Philex said present during the signing of the omnibus loan and security agreement (OLSA) were the executives of Philex, led by its chairman Manuel Pangilinan and its president and CEO Eulalio Austin, Jr., other executives of Silangan Mindanao Mining Co. Inc., as well as executives of the lenders, namely Union Bank of the Philippines, Security Bank Corp. and Bank of the Philippine Islands, and BDO Capital and Investment Corp. as lead arranger.
Austin said the signing of the OLSA for the $100 million debt facility is another positive milestone to support the ongoing development of the Silangan Project.
For his part, Philex senior vice-president and CFO Romeo Bachoco said the company raised P2.6 billion from its stock rights offer (SRO) last year, which was used for the commencement of the development of Phase 1 of the the Silangan project.
“Phase 1 of the Silangan project, which covers the Boyongan ore deposit, has an estimated mine life of 28 years based on our declared mineable reserves of 81 million tons at 0.67 percent copper and 1.13 grams/ton gold, containing an estimated recoverable Copper of 993 million pounds and 2.8 million ounces of gold,” Bachoco said.
Philex said that development works continue in the Silangan project with the ongoing underground tunneling works, passing the 210 meters mark or about 35 percent of the distance towards the ore body.
“Clearing works and access road to the tailings storage facility (“TSF”) area are nearing completion with the issuance of the permit by the Municipality of Sison, Surigao del Norte for the construction of the TSF,” Philex said.
It said that management is in the final stages of evaluating the proposals and is set to award the contract for the TSF, as well as for the process plant under an EPcm (engineering, procurement and construction management arrangement).
The Silangan Copper and Gold Project, touted as one of the Big Three mining projects in the country, is targeted to commence commercial operations by the first quarter of 2025.
The company earlier said the initial capital cost to develop the starter mine is around $224 million, which would be financed by a combination of capital infusion from the company, equity via stock rights offer (SRO), and debt.