Philex Mining Corp. is negotiating with foreign investors for a minority stake in its wholly-owned subsidiary, Silangan Mindanao Mining Co. Inc., as part of ongoing efforts to develop the high-grade Silangan copper and gold project.
Manuel V. Pangilinan, Philex chairman, confirmed that the investor, rather than Philex itself, would acquire a minority stake directly in Silangan. He acknowledged the gold mine is nearing depletion. Silangan, in contrast, is a newer project with significant reserves, positioning it as a more attractive investment opportunity.
Pangilinan emphasized that Philex intends to retain control of the Silangan project, citing its vast potential. The company previously explored a partnership with a Chinese firm before the pandemic, but those discussions were eventually put on hold.
In line with the development of the Silangan mine, Philex recently secured USD170 million earlier this year to fund the project, and is looking to raise an additional USD400 million to finance the second phase of operations expected to begin commercial production later this year. The company has also signed a deed of accession for an additional USD70 million with syndicated lenders, including the Philippine National Bank, Philippine Bank of Communications, and Security Bank Corp., with SB Capital Investment Corp. acting as lead arranger.
The Silangan Copper and Gold Project, located in Surigao del Norte, is considered one of the most significant mining ventures in the country. Its mining claims at Boyongan, Bayugo-Silangan, and Bayugo-Kalayaan make it a key player in the mining sector. The Bayugo-Kalayaan is also in partnership with Manila Mining Corp.
Philex’s negotiations with foreign investors and its aggressive financing strategy underscore the growing commercial importance of the Silangan project as it moves closer to production.
