PHILEX EYES PARTNER FOR SILANGAN MINE

Philex Mining Corporation is eyeing a strategic partner for its copper and gold project in Surigao del Norte called Silangan mine, where it had already plunked P17 billion in pre-development works.

In a disclosure to the Philippine Stock Exchange, Philex said it is eyeing Chinese mining firms to develop its $1 billion Silangan mine.

Philex Chairman Manuel Pangilinan had earlier indicated that the development of Silangan mine could be funded partially by borrowings and the rest through equity infusion by the new partner.

“Some $700 million is required to bring Silangan mine to fruition. We will raise money from debts and balance will be equity from the new partner,” Pangilinan had said.

Also, Philex Mining is studying the possibility of extending by another two years the Padcal mine in Benguet province.

The company said its financial advisors are in close discussions with the potential investors to get a clearer indication in the soonest possible time.

The project will be financed by a combination of equity investment from strategic partners and debts. The pandemic has slowed down global M&A transactions and the investors for the Silangan project are no exception.

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