Philex Mining Corp. said it has sign a term sheet that may potentially expand its mining operation through the property of Macawiwili Gold Mining and Development Co. Inc.
The term sheet outlines the two companies’ plans to explore commercial, financial and technical avenues for a possible shares acquisition by Philex in Macawiwili Gold.
“Activities to kick off this partnership will include conduct of due diligence and scout drilling activities on the property of Macawiwili Gold covered by mineral production sharing agreement (MPSA) in Itogon, Benguet Province., located adjacent to the existing Padcal mine of the company,” Philex said.
Eulalio Austin Jr., Philex president, said the planned acquisition into Macawiwili Gold is part of Philex’s business direction to “broaden interest in ‘green metals’ through mergers and acquisitions.”
“We need to hit the ground with this at the soonest possible time considering that this property is adjacent to our Padcal mine and would go a long way in fulfilling company plans for expansion and extension of the life-of-mine of Padcal,” he said.
Philex’s Padcal mine has been in production since 1958. Philex in December said it has confirmed a 24 million tons mineable reserve still in Padcal which extends its mine life to 2027.
“The new extension of the life of Padcal mine from Dec. 31, 2024 to Dec. 31, 2027 will provide the continuous employment of 1,838 Padcal employees as well as sustain the necessary assistance given to the social development of the host and neighboring communities,” Philex earlier said.
“This is a good addition or extension to the Padcal Mine,”said Manuel Pangilinan, Philex chairman.
“I hope that this is the start of something good and that it would ride the wave of higher metal prices in gold and copper,” he added.
