Philex Mining raises $70M more for Silangan project

MANILA, Philippines  —Pangilinan-led Philex Mining Corp. has secured the entire $170 million financing it needed to develop the Silangan mine project in Surigao del Norte province.

In a disclosure on Wednesday, Philex Mining said its subsidiary Silangan Mindanao Mining Co. Inc. signed a deed of accession with local banks for an additional $70 million credit facility for the copper-gold project.

Executives of Philex Mining and Silangan Mindanao Mining signed the deed with lenders Philippine National Bank (PNB), Philippine Bank of Communications (PBCOM) and Security Bank.

SB Capital Investment Corp. served as the mandated lead arranger while PNB and PBCOM acted as joint lead arrangers.

Before this, Philex Mining signed last November an omnibus loan and security agreement for a $100-million syndicated debt facility with Union Bank of the Philippines, Security Bank and Bank of the Philippine Islands. BDO Capital and Investment Corp. was mandated as lead arranger.

READ: Philex borrows $100M for Silangan project

The latest transaction completed the $170-million loan funding requirement of Philex Mining following its stock rights offering last year and the capital infusion from Philex Mining’s cash reserves

Philex Mining managed to raise P2.6 billion from its stock rights offer in 2022, which it used to jump-start the first phase of the Silangan project covering the Boyongan Ore deposit.

READ: Pricey power, higher input costs eat into Philex Mining profits

The company intends to start commercial operations of the Silangan project, touted as one of the big three mining projects in the Philippines, by the first quarter of 2025.

“Development works continue in the Silangan project with the ongoing underground decline development now midway to the Boyongan ore body,” the firm said. INQ