Lepanto Consolidated Mining Co. of bilyonaryo Felipe Yap has slashed the price of its planned stock rights offering but raised the number of shares to be issued to existing shareholders.
In a stock exchange filing, Lepanto said the final price has been set at 12 centavos each share, lower than the earlier announced 14 centavos due to sluggish market conditions.
The company, however, is still expected to raise up to P2.02 billion from the offering as it increased the number of offer shares to 16.8 billion shares from 14.43 billion.
Proceeds from the offering will be used to fund Lepanto’s exploration drilling for gold and copper deposits, repay debt and support working capital.
Eligible shareholders can buy one share for every 3.95 shares held.
The offer shares will be issued out of the company’s proposed increase in authorized capital from P6.64 billion to P9 billion.
Lepanto is looking to produce gold from its Victoria and Teresa deposits.
Its mill plant is undergoing rehabilitation to improve gold and silver recoveries and increase throughput.