Benguet Corporation is actively seeking investors to fund new and expansion projects after clearing its decades-old debt.
In a disclosure to the Philippine Stock Exchange (PSE), the company announced cash dividends of Php 0.20 per common share and Php 0.28 per convertible preferred share, marking its first dividend declaration in over 30 years.
This milestone follows the resolution of all outstanding debts, culminating in the company’s exit from a 35-year-long financial burden.
“The termination of the 1993 Debt Restructuring Agreement and Mortgage Trust Indenture is the culmination of management’s long and hard struggle to free the Company from its outstanding debt liabilities that have for more than 30 years subjected it to hardship and constraint of operation,” said Benguet Corporation President Lina Fernandez.
With its debt fully resolved, the mining firm plans to re-enter capital markets and engage investors in projects to diversify its revenue streams and potentially offer more dividends in the future.
The company aims to strengthen its position in mining while branching out into agriculture, real estate, bulk water, and renewable energy ventures.
In October, the firm finalized a mutual rescission agreement with its remaining creditors, terminating a Php 1.4-billion debt restructuring plan initiated in 1993.
Over the years, the company settled a significant portion of its obligations, with the remaining creditors opting to convert debts into investments.
During the same month, the board approved a private placement proposal by Red Earth, injecting Php 440 million into the company to fund mining, agriculture, and other ongoing projects.
The deal involves issuing 110 million shares, with 90 million from unissued shares and 20 million from an increase in the company’s capital stock.
The additional capital will be used to develop various initiatives, including the Pantingan and Bolco gold projects, a solar project, and an agribusiness venture.
