Philex Mining Corp. has raised P2.65 billion from a stock rights offering (SRO) to help jumpstart its long-delayed Silangan project in Surigao del Norte.
The mining firm, led by bilyonaryo Manny V. Pangilinan, offered a total of 842 million common shares at the rate of one share for every 5.8764 shares owned for P3.15 apiece.
Net proceeds from the SRO will be used for the development of the Silangan project, which includes mine development, construction of the mill plan and support facilities and storage tailings facility.
Finance Secretary Benjamin Diokno said the stock rights offer of Philex reflects confidence in the country’s promising economic growth prospects and “sends a strong signal to the mining industry that our capital markets are viable instruments for fast tracking the development of large mining projects.”
“ Through this offering, Philex will further expand operations and develop a new mine in Surigao. This will mean more jobs will be created, Local communities will be invigorated and additional revenues will be contributed to the government.
“The mining industry holds the greatest potential to be a key driver in our recovery and long-term growth especially now that gold metal prices are high. The Philippines after all is one of the world’s most richly endowed countries in terms of mineral resources. Under the Marcos administration, the government commits to crate an enabling environment for mining to fluorish in the country,” Diokno said.
“We recognize that apart from boosting local development, mining is strong magnet for investments that can propel our economy to higher growth trajectory,” the DOF chief said.
Diokno said he expects the mining industry to strictly adhere to responsible and sustainable practices.
“This is a non-negotiable condition so we can guarantee the sustainability of the industry and the strong economic growth of its host communities,” he said.
“ As one of the largest copper and gold producers in Southeast Asia, Philex has been an industry leader in principled mining. It has been a staunch advocate of transparency and accountability in the mining sector and a reliable government partner in pursuing better resource and revenue management,” Diokno noted.