The Securities and Exchange Commission (SEC) has approved the planned P3.15 billion stock rights offering of Philex Mining Corporation to fund the development of its Silangan mine.

The Commission En Banc resolved to render effective the registration statement filed by Philex Mining for a stock rights offer covering up to 842 million common shares, subject to certain remaining requirements.

The actual number of common shares to be issued will depend on the final offer price. Philex Mining will offer the shares to eligible shareholders for a maximum offer price of P4.81 per share.

Net proceeds from the offer could amount to P3.06 billion. Proceeds will be used for the company’s investment in subsidiary Silangan Mindanao Mining Company, Inc. (SMMCI) through Silangan Mindanao Exploration Co., Inc. (SMECI).

The firm will use the funds for the capital expenditures and development cost of its Silangan Project, which includes mine development, construction of the mill plant and support facilities, and storage tailings facility.

The stock rights offer will run from February 28 to March 10, in time for the listing of the offer shares on the Philippine Stock Exchange on March 21, according to the latest timetable submitted by Philex Mining to the SEC.

Philex Mining said it will infuse fresh capital into SMECI, and finally to the project company SMMCI, to support its wholly-owned subsidiary jump start the development of a starter mine in its Silangan Project Phase 1 in Surigao del Norte.

“This is a significant indication that Philex, as parent company of SMECI and SMMCI, is committed to get this project going,” said Philex Chief Finance Officer and Treasurer Romeo B. Bachoco.

He added that, “This would signal to qualified shareholders, and potential investors alike, who will participate in the stock rights offer as well as the lenders who will join the loan syndication that Philex will infuse fresh capital because it strongly believes in the feasibility of the Silangan Project.”

The Silangan Project will involve the development of a starter mine beginning this year and will go on commercial operation by early 2025.

The mine will initially produce 2,000 tons of ore per day (about 700,000 tons a year), and will gradually ramp up to 12,000 tons per year as it invest additional capital for the ramp up of its mining operations.

The Silangan Project has an estimated 81 million tons in mineable reserves that contain around 993 million pounds of copper and 2.8 million ounces of gold.

Silangan mine will produce, throughout its 28-year life, an annual average of 35 million pounds of copper and 100,000 ounces of gold.