Silangan Mindanao Mining Co., Inc., a wholly owned subsidiary of Philex Mining Corporation, signed a syndicated debt facility, led by BDO Capital and Investment Corporation, in simple ceremonies in Pasig City.
Present during the signing of the Omnibus Loan and Security Agreement (OLSA) were the executives of the Company, led by its Chairman Manuel V. Pangilinan and its President and CEO Eulalio B. Austin, Jr., other executives of Silangan Mindanao Mining Co. Inc. as well as executives of the Lenders, namely Union Bank of the Philippines, Security Bank Corporation and Bank of the Philippine Islands, and BDO Capital and Investment Corporation as lead arranger.
According to Philex President and CEO, Eulalio B. Austin Jr., the signing of the OLSA for the US$100 million debt facility is another positive milestone to support the ongoing development of the Silangan Project.
“All these would not have been made possible,” Austin added, “without the favorable climate for mining that the administration of President Ferdinand “Bongbong” Marcos Jr. had created.”
“Our Stock Rights Offer (SRO) last year raised net proceeds of Php2.6 Billion,” according to Romeo B. Bachoco, Philex Senior Vice-president and CFO. “We used the proceeds to commence the development of Phase 1 of the Project. Phase 1 of the Silangan Project, which covers the Boyongan Ore Deposit, has an estimated mine life of 28 years based on our declared Mineable Reserves of 81 Million tonnes at 0.67% Copper and 1.13 grams/tonne Gold, containing an estimated recoverable Copper of 993 Million Pounds and 2.8 Million Ounces of Gold.”
Development works continue in the Silangan Project with the ongoing underground tunneling works, passing the 210 meters mark or about 35% of the distance towards the ore body. Clearing works and access road to the Tailings Storage Facility (“TSF”) area are nearing completion with the issuance of the permit by the Municipality of Sison, Surigao del Norte for the construction of the TSF. Management is in the final stages of evaluating the proposals and is set to award the contract for the Tailings Storage Facility as well as for the process plant under an EPcm arrangement.
The Silangan Copper and Gold Project touted as one of the Big Three mining projects in the country is targeted to commence commercial operations by first quarter of 2025.
