Philex Mining Corp. expects to produce the first gold out of its Silangan project in Surigao del Norte by January 2025 as it proceeds with the mine development of its Boyongan ore deposit.
Philex is in the middle of a P3.1- billion stock rights offer to jumpstart the mine development of the reserve that has an 81 million metric tons of mineable reserve.
Eulalio Austin, Philex president, said the deposit will produce 2.81 million ounces of gold and 993 million pounds of copper over its 28-year mine life.
Philex has until 2049 to develop the Silangan mine site. The mine also has the Bayugo deposit, which forms part of the mine’s phase two development.
“The phase one will require an initial investment of $224 million, or about P11.2 billion and additional investment in terms of sustaining capex throughout its 28 -year mine life of about $1.5 billion dollars or about P75.4 billion for a total investment of $1.7 billion or about P86.7 billion over the 28-year mine life,” Austin said.
Romeo Bachoco, Philex chief finance officer, said the total spending for the Silangan project will be financed in part by internally-generated case of about P3 billion, debt financing of about P6 billion, and the remaining through the still-to -be completed stock rights offering.
The P3.1- billion financing is expected to be completed by April, according to Bachoco, adding that underwriter BDO Unibank Inc. is still in the bookbuilding and marketing process.
Manny Pangilingan, Philex chairman, said Philex mother company First Pacific Ltd., has committed to participate in the company’s stock rights offer.
As far as the $224 million initial investment for the Boyongan deposit is concerned, Bachoco said it will be spent within two and a half years of the development that is set to start in the second quarter of this year.
“The bulk of the spending will be done in 2023 and 2024,” he said.
