Philex Mining Corp. yesterday said it is pushing through with its P13.81 billion stock rights offering. The money will be used to repay loans and fund its capital expenditures.
Philex said the Securities and Exchange Commission (SEC) has already served notice of the filing of Philex’s registration statement which will pave the way for the rights offering to shareholders of record as of October 16, 2013.
The firm had to shelve the rights offering since operations at its Padcal mine was still suspended due to a tailings dam spill.
The registration statement was filed last March when government regulators allowed it to temporarily resume operations so it can shore up its tailings dam. The temporary lifting has been extended after its July deadline.
The net proceeds from the stock offer will be used by the company for the repayment of loans from the First Pacific Group, capital expenditures and exploration costs related to existing projects, primarily the Silangan project and the Kalayaan project, and general corporate purposes.
Philex Mining borrowed P2.1 billion from majority shareholder First Pacific Co. Limited last November to repair the Padcal tailings dam and to finance the Silangan project.
Philex Mining earlier said it was on-track to start production in its Silangan Project by 2017.
The project covers the Boyongan and Bayugo deposits, which are currently under prefeasibility study.
The Silangan project aims to produce 35,000 to 60,000 tons per day the firm’s other Greenfield projects are seen to produce about another 15,000 tons per day once they start operations.1