The Securities and Exchange Commission (SEC) has given the green light to the stock rights offer (SRO) of Philex Mining Corporation amounting to Php3.15 billion.
In a report by The Philippine Star, the SEC en banc resolved to render effective Philex’s registration statement for an SRO covering up to 842 million common shares, which is subject to remaining requirements.
The quasi-judicial agency added that the actual number of common shares that will be issued will depend on the final offer price.
Under the said SRO, Philex Mining will offer the shares with a maximum offer price of Php4.81 per share.
Proceeds of the SRO will be used for investments in the company’s subsidiary, Silangan Mindanao Mining Co. Inc., particularly mining development, mill plant and support facilities’ construction, and storage tailings facility.
The SRO will run from February 28 to March 10, while listing in the Philippine Stock Exchange would be on March 21.
Philex Chief Finance Officer and treasurer Romeo Bachoco mentioned that a part of the $224 million funding needed for the Silangan Copper-Gold projects will come from the SRO.
The Manny V. Pangilinan-led firm is looking to begin the first phase of the Silangan project this year, which is seen to produce 2,000 tons of ore a day. By the 12th year of operations, it’s expected to increase up to 12,000 a day.
Commercial operations of the Silangan project are expected to commence by the first quarter of 2025.
