SEC Clears Philex P2.65-B Stock Sale

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The Securities and Exchange Commission (SEC) has conditionally approved a 2.65 billion peso stock rights offering (SRO) planned by Philex Mining Corp., led by Manuel Pangilinan, to raise funds for its Silangan copper-gold project in Surigao del Norte.

In a statement to the Philippine Stock Exchange, Philex Mining said it had received the pre-effective letter from the SEC which authorized its offering of up to 842 million common shares for P3.15 each.

Under this SRO, which will run from July 14 to July 25, existing shareholders have the right to purchase one share for every 5.8674 ordinary shares held.

This is subject to Philex Mining’s compliance with the terms set forth by the SEC in the pre-effective letter.

“The pre-effective letter is without prejudice to the prerogative of the SEC to subsequently act against the Company, if warranted, to ensure full compliance with the provisions of the Code of Securities Regulation, its rules and regulations of execution, together with PD (Presidential Executive Order) 129, as amended, and the Omnibus Rules and Regulations for Investment Firms and Universal Banks Registered as Underwriters of Securities,” he added.

Philex Mining originally planned to roll out its SRO early this year, but volatile market conditions forced the company to postpone it.

Favorable time

Just last week, the listed company said fundraising activity would continue on the back of booming mining activity as gold and copper prices hit higher levels.

Proceeds from this transaction will be set aside for the development of the $224 million Silangan copper-gold project in Surigao del Norte.

The first phase of the Silangan project, which will start this year, will initially produce around 2,000 tonnes of ore per day. Production will gradually ramp up to reach 12,000 tonnes per day, or 4 million tonnes per year.

Commercial operations at the mine site, billed as one of the largest mining projects in the Philippines, are expected in the first quarter of 2025.

Philex Mining will finance this project by injection of capital, SRO and debt. He is ready to invest between 2.5 and 3.5 billion pesos to launch the project. INQ


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