Silangan Mindanao Mining Co., a wholly owned subsidiary of bilyonaryo Manny V. Pangilinan-led Philex Mining Corp., has secured a $100 million debt facility in a deal with a consortium of financial institutions led by BDO Capital and Investment Corp.
The other lenders were Union Bank of the Philippines, Security Bank Corp., and Bank of the Philippine Islands.
Philex president and CEO Eulalio B. Austin Jr. characterized the signing of the omnibus loan and security agreement (OLSA) for the $100 million debt facility as a positive milestone supporting the ongoing development of the Silangan Project.
Austin acknowledged the favorable mining climate fostered by the administration of President Ferdinand “Bongbong” Marcos Jr., which facilitated such endeavors.
Romeo Bachoco, Philex SVP and CFO, noted that the P2.6 billion raised from the company’s stock rights offering last year initiated the development of phase 1 of the Silangan Project, focusing on the Boyongan ore deposit.
The Boyongan deposit boasts an estimated mine life of 28 years, based on declared mineable reserves of 81 million tons at 0.67% copper and 1.13 grams/tonne gold, containing an estimated recoverable copper of 993 million Pounds and 2.8 million ounces of gold.
Advancements in the Silangan project include ongoing underground tunneling works, surpassing the 210 meters mark or approximately 35% of the distance towards the ore body.
Clearing works and access road to the Tailings Storage Facility (TSF) area are nearing completion, with the municipality of Sison, Surigao del Norte, granting the permit for TSF construction.
The management is in the final stages of assessing proposals and is poised to award contracts for the TSFand the process plant under an EPcm arrangement.
Positioned as one of the Big Three mining projects in the country, the Silangan copper and gold project is slated to commence commercial operations in the first quarter of 2025.