Philex secures USD100M loan for further Silangan mine devt

Philex Mining Corp. said Tuesday that its wholly-owned subsidiary, Silangan Mindanao Mining Co. Inc, has signed a USD100 million debt facility with a syndicate of banks led by BDO Capital and Investment Corp.

The loan will further fund the development of Silangan mine, whose initial phase of development has been financed with the proceeds of a P2.6 billion stock rights offer of Philex last year.

The Omnibus Loan and Security Agreement were signed by Philex executives, led by its chairman Manuel V. Pangilinan and its president and chief executive officer Eulalio B. Austin, Jr., other executives of Silangan Mining as well as executives of  Union Bank of the Philippines, Security Bank Corp. and Bank of the Philippine Islands, and BDO Capital. 

“All these would not have been made possible,” said Austin, “without the favorable climate for mining that the administration of President Ferdinand “Bongbong” Marcos Jr. had created.” 

Romeo B. Bachoco, Philex senior vice-president and chief finance officer, said the syndicated loan will fund further development works, including clearing and tunneling, to reach the Boyongan ore deposit that  has an estimated mine life of 28 years based on the declared mineable reserves of 81 million tons containing an estimated recoverable copper of 993 million pounds and 2.8 million ounces of gold.

Clearing works and access road to the tailings storage facility area are nearing completion with the issuance of the permit by the Municipality of Sison, Surigao del Norte for the construction of the TSF. Management is in the final stages of evaluating the proposals and is set to award the contract for the Tailings Storage Facility as well as for the process plant under an EPcm arrangement. 

Silangan mine is expected to start commercial operation in the first quarter of 2025.