Philex Mining Corp. said Thursday the Silangan mine may yield nearly $7 billion in gold and copper sales over 28 years.
Philex said in a statement the positive financial assumption pushed the mining firm to pursue the development of the first phase of the project in Surigao del Norte province without a joint venture partner.
“The numbers for the Silangan Project are very compelling, pushing us to pursue the mine development even without a strategic partner or major investors as we originally envisioned,” said Romeo Bachoco, chief finance officer of Philex.
Philex earlier said the first phase development of Silangan project would start this year with initial capital requirements of $224 million.
The starter mine is expected to initially produce 2,000 tons of ore a day and begin commercial operations by early 2025, reaching 12,000 tons a day by the 12th year of operation.
The Boyongan deposit of the Silangan mine has an estimated 81 million tons of mineable reserves that could yield 992.8 million pounds of copper and 2.81 million ounces of gold. The estimated mineable reserve is based on Philex’s in-phase mine plan for Silangan.
Philex is still exploring the nearby Bayugo deposit.
The feasibility study assumed a price of $3.20 per pound of copper and $1,342 an ounce for gold—both below current prices of copper of over $4 per pound and of gold that is over $1,800 an ounce.
Using those assumed prices, the combined revenues from copper and gold would reach $6.91 billion over the 28 years life of the soon-to-be-developed mine.
Philex plans to raise P3.15 billion from rights offering to partially fund the initial capital.
Based on the filing with the Securities and Exchange Commission, Philex will sell up to 842 million common shares at P4.81 apiece.
The miner appointed BDO Capital and Investment Corp. as issue manager and lead underwriter. The offer period will be from Feb. 14 to 18 while listing on the Philippine Stock Exchange would be on March 2.