Benguet Corp., a listed mining company, said Wednesday it raised P440 million in fresh capital through two separate private placement agreements with Red Earth Mineral Resources Corp.
The capital-raising deals, finalized on Tuesday, involve Red Earth’s subscription to a total 110 million common shares.
In the first transaction, Red Earth will acquire 90 million shares from Benguet’s unissued stock, divided into 53 million Class A shares and 37 million Class B shares, each priced at P4.00.
The second agreement involves Red Earth subscribing to 20 million shares, each valued at P4.00. This second transaction comprises 13 million Class A shares and 7 million Class B shares
Red Earth made an initial payment of P280 million for the first transaction, with the remaining P80 million to be paid after stockholders approve the private placement at their meeting on December 20.
Red Earth also made a P20 million deposit for the second transaction, with the balance of P60,000,000.00 to be paid after the Securities and Exchange Commission approves the capital increase.
This capital infusion represents a strategic move for Benguet as it continues to strengthen its financial position and explore new growth opportunities. The new capital will support the company’s expansion plans and operations, enabling it to pursue both existing and new projects more effectively.
With this fresh capital, Benguet Corporation is well-positioned to advance its long-term growth strategy. The agreements with Red Earth not only provide crucial funding but also highlight the strong investor confidence in the Company’s prospects in the years ahead.
