THE board of directors of Benguet Corp. approved a proposed private placement by Red Earth Mineral Resources Corp. in the company.
Benguet said in a disclosure to the Philippine Stock Exchange yesterday a total of 110 million shares will be purchased by Red Earth for P4 each or a total of P440 million.
Benguet Corp. said the amount will be used for capital infusion on the development of the Pantingan gold project in Bataan, the Bolco gold project in Zamboanga, a solar power project and an agri business venture.
For the first part of the private placement, Red Earth will subscribe to 90 million shares from the unissued shares of the company broken down to 53 million class A common shares and another 37 million class B common shares.
For the second part, Red Earth will subscribe to 20 million shares from the increase of capital stocks broken down to 13 million class A common shares and another 7 million class B common shares.
Earlier this month, Benguet Corp. secured the approval of the Department of Environment and Natural Resources (DENR) for the 25-year renewal of its mineral production sharing agreement for resource areas in Bataan, starting March 31, 2025 covering r the company’s 1,410 hectares in the towns of Bagac, Mariveles and Limay.
Benguet Corp. produces and markets gold, silver, nickel ore and limestone as it operates gold mines in Benguet, nickel mines in Zambales and a limestone production facility in Baguio City.
