Philex Mining Corp. is in talks with a foreign investor that will invest directly in Silangan Mindanao Mining Corp., which operates the Silangan copper-gold project in Surigao del Norte province, a top executive said over the weekend.
Philex chairman Manuel Pangilinan said the potential investor would acquire a minority stake in Silangan and that Philex would maintain a majority control over the company.
Philex recently surged to a 52-week high of P7.23 after staying at around P3 per share for most part of 2024 due to recent spike in gold prices.
Gold is traditionally regarded as a safe-haven investment during periods of economic or geopolitical instability.
Philex said earlier the Silangan project achieved a major milestone in its development as the construction of the tailings storage facility (TSF) reached 50-percent completion mark.
Philex said major components of long lead equipment packages for the process plant such as SAG Mill, Atmospheric Leach Feed Thickeners and HAB Feeder and Primary Sizers were also delivered on site and were ready for installation.
All the equipment packages were awarded and in different stages of manufacturing by various mining industry suppliers in several countries.
Both the underground production tunnels and the TSF are expected to be finished by the third quarter of 2025. The process plant is on schedule to be ready for commissioning by the fourth quarter of 2025.
Phase one of Silangan covers the Boyongan deposit, which contains 81 million tons of mineable material.
Philex plans to make the Silangan project operational by the first quarter of 2026 or before the end of Padcal’s mine life.
Philex has been raising money through loans, rights offering and internally-generated funds to finance operations of Silangan mine.