Philex goes on rights offering for Silangan project

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TUBA, Benguet – The Philex Mining Corporation will be going on to the so-called stock rights offering to be able to generate the initial funds required to make its Silangan gold and copper project in Surigao del Norte operational by the end of 2024 or the first quarter of 2025.

Philex president and chief executive officer Engr. Eulalio B. Austin, Jr. disclosed that the mining company’s Silangan gold and copper project was pegged to have an overall funding requirement of around $4754 million for it to be operational but the Board of Directors upon the recommendation of the management decided to make the project on a per stage basis to be able to jumpstart the development of the proposed mine.

He claimed that by next year, Philex will be offering the drawdown of money through the stock market where some $65 million is expected to be raised from prospective investors wanting to participate in the operation of the gold and copper mine.

Further, the Philex official added that after raising the said initial capitalization, the company will be going to the banks to borrow the remaining $160 million that will be used to make the mine operational to help in bringing back the vibrancy of the company’s mining industry.

Initially, Philex’s Silangan gold and copper mine project is expected to produce approximately 2,000 tons of ore daily in the first two years of its operation which will increase to around 4,000 tons daily on the fourth year, 6,000 tons daily on the sixth year, 10,000 tons daily on the tenth year and 12,000 tons daily on the twelfth year.

According to him, Philex was able to renew tits Mineral Production Sharing Agreement (MPSA) which will expire on 2024 after it was able to secure a certification of non-coverage from the National Commission on Indigenous Peoples (NCIP) stating among others that there are no indigenous cultural communities and indigenous peoples who will be affected by the operation of the mine site in the area.

Austin stated that the company targets to make the mine operational by the end of 2024 or by the first quarter of 2025 depending on the implementation of the mine development which will be undertaken once the initial funding requirement will be raised within the prescribed timetable that had been drafted for the said purpose.

Philex is currently operating its Padcal mine which is given a mine life up to 2024 after its earlier projected mine life of 2022 was extended for another 3 years.

He explained that the projected operation of Philex’s Silangan gold and copper project by the end of 2024 or by the first quarter of 2025 will be right in time for the end of mine life of its Padcal mine and will help in sustaining the employment of the workers who will opt to work with the company in its new project site in Surigao del Norte aside from improving the economic activities and sources of livelihood of the people in the area.

Austin expressed hope that everything will proceed as planned by management so that Philex will be able to contribute in helping improve the contributions of mining to the overall state of the country’s economy aside from in generating employment opportunities for the people and the development of the host and neighboring communities in the project site where the mine is expected to be built. By HENT

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