Silangan Mindanao Mining Signs US$100 Million Debt Facility

Silangan Mindanao Mining Co., Inc., a wholly-owned subsidiary of Philex Mining Corporation, one of the oldest and largest gold and copper producers in Southeast Asia, announced that it has signed a syndicated debt facility led by BDO Capital and Investment Corporation.

Touted as one of the Big Three mining projects in the country, the Silangan Copper and Gold Project is targeted to commence commercial operations by the first quarter of 2025. I Photo: Acersteel

In its disclosure to the Philippine Stock Exchange (PSE), the company stated that the officials present during the signing of the Omnibus Loan and Security Agreement (OLSA) in Pasig City were the executives of the company, led by its Chairman Manuel V. Pangilinan and its President and CEO Eulalio Austin, Jr.

Other executives of Silangan Mindanao Mining Co. Inc. and representatives of the lenders, namely Union Bank of the Philippines, Security Bank Corporation, Bank of the Philippine Islands, and BDO Capital and Investment Corporation as the lead arranger, were also present.

The signing of the OLSA for the US$100 million debt facility is considered a positive milestone in supporting the ongoing development of the Silangan Project, according to Austin Jr.

He said, "All these would not have been made possible without the favorable climate for mining that the administration of President Ferdinand 'Bongbong' Marcos Jr. had created."

Philex Senior Vice-president and CFO Romeo Bachoco stated, "Our Stock Rights Offer (SRO) last year raised net proceeds of Php2.6 Billion. 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," he added.

Bachoco explained that development works continue in the Silangan Project with ongoing underground tunneling works, passing the 210-meter mark or about 35% of the distance towards the ore body.

Clearing works and the 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.

The Management is in the final stages of evaluating the proposals and is set to award the contract for the TSF as well as for the process plant under an EPCM arrangement. Touted as one of the Big Three mining projects in the country, the Silangan Copper and Gold Project is targeted to commence commercial operations by the first quarter of 2025.

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