Philex Mining Corp., one of the largest copper and gold producers in Southeast Asia, has taken the initial steps to acquire a stake in Macawiwili Gold Mining and Development Co. Inc., a gold and copper miner in Benguet.
Philex and Macawili have signed the term sheet that spells out their intention to explore commercial, financial and technical issues, including due diligence studies, that are seen to lead Philex into buying shares in Macawiwili.
Macawiwili has a contract under its mineral production sharing agreement with the government covering over 800 hectares and near Philex’s Padcal gold and copper mine.
Padcal is nearing the end of its mine life and further extending its operations would be expensive for the mining company.
Philex has already started developing the Silangan mine project in Mindanao and expects it to start gold and copper production by 2025.
“Our interest to pursue investments in the Macawiwili property,” said Eulalio Austin, Jr., Philex president and chief executive officer, “is part of our business direction for this year to broaden interest in ‘green metals’ through mergers and acquisitions.”
“We need to hit the ground with this at the soonest possible time,” Austin adds, “considering that this property is adjacent to our Padcal mine and would go a long way in fulfilling company plans for expansion and extension of the life-of-mine of Padcal.”
Philex chairman Manuel V. Pangilinan said the impending acquisition is a “good addition or extension” to the Padcal Mine, one of the oldest operating gold and copper mines in the Philippines.
“I hope that this is the start of something good and that it would ride the wave of higher metal prices in gold and copper,” Pangilinan said.
