Pangilinan-led Philex Mining Corp. is looking to secure a syndicated loan to partially finance the first phase of the Silangan copper-gold mine in Surigao del Norte, aiming to commence operations by 2025.
Philex President and CEO Eulalio Austin announced during the recent stockholders’ meeting that the company is close to securing the entire funding for the project, with the debt syndication component in its final negotiation stages.
Multiple financial institutions are involved in the debt syndication process, with BDO Capital and Investment Corp. as the lead arranger
The funding for the Silangan project will be partially sourced from a stock rights offer (SRO) worth P2.65 billion, which was successfully concluded in August last year.
Austin mentioned that the Silangan project will receive partial funding through an additional cash infusion from Philex’s cash reserves.
The first phase of the Silangan copper-gold mine is projected to initially spend $224 million, as stated by the company.
The mining company has been engaged in earthmoving activities to construct the ventilation pad and box cut portal, essential for initiating underground tunneling operations and commencing the mine development process.
Furthermore, advanced de-watering activities are being carried out as part of the preparations for excavating the decline tunnel.
Once the decline tunnel is finished, it will enable the commencement of groundworks on the access decline leading to the ore body.
The mining company is in the process of finalizing the Front-End Engineering Design (FEED) works.
The initial phase of the Silangan project, which encompasses the Boyongan deposit, has an expected mine lifespan of 28 years and will require a development period of two and a half years.
The production output of the Silangan project will begin at approximately 2,000 tons of ore per day and gradually increase to 12,000 tons per day or four million tons per year by the twelfth year of operation.
