Philex Mining Corp. said Wednesday its wholly owned subsidiary Silangan Mindanao Mining Co., Inc. (SMMCI) has secured an additional $70 million debt facility from three lenders to partially finance its $1.1 billion Silangan mine project.
Philex said in a disclosure to the stock exchange Wednesday that SMMCI obtained the fresh loans from Philippine National Bank (PNB), Philippine Bank of Communications (PBCOM), and Security Bank Corp.
The mining firm said the signing of the agreement completes the total loan facility of $170 million needed to bring the Silangan Project into commercial operation by the first quarter of 2025.
SB Capital Investment Corp., acted as lead arranger, and PNB and PBCOM are the joint lead arrangers for this transaction.
The mining firm said development works continue in the Silangan Project with the ongoing underground decline development now midway to the Boyongan ore body.
“Initial works at the tailing storage facilities have started, while the tendering process for the various packages of the process plant is ongoing. Packages for some of the long lead items needed for the process plant have already been awarded to various global suppliers,” it said.
SMMCI also signed in November the omnibus loan and security agreement for a $100 million syndicated debt facility with Union Bank of the Philippines (UBP), Security Bank and Bank of the Philippine Islands, with BDO Capital and Investment Corp. as lead arranger and UBP as co-lead arranger.
The Silangan copper and gold project is touted as one of the big three mining projects in the country and is targeted to commence commercial operations by first quarter of 2025.
Phase 1 of the Silangan Project, which covers the Boyongan ore deposit, has an estimated mine life of 28 years based on our declared mineable reserves of 81 million tons at 0.67 percent copper and 1.13 grams/ton gold, containing an estimated recoverable copper of 993 million pounds and 2.8 million ounces of gold.
Philex is one of the oldest and largest gold and copper producers in Southeast Asia. It is currently operating the Padcal mine in Benguet following the extension of its mine life until 2027.