Philex Mining Corporation is postponing its planned P3.15 billion stock public offering “given the current market volatility to help ensure its success.”

In a disclosure to the Philippine Stock Exchange, the firm said it had agreed with issue manager and lead underwriter for the offer BDO Capital & Investment Corporation “to further adjust the timetable of the Offer to a later date.”

Philex said it has notified the Securities and Exchange and the PSE of the change in the timetable and it will make the necessary disclosures once the revised Offer timetable is finalized in coordination with the SEC and the PSE.

The mining firm planning to raise up to P3.15 billion from its existing shareholders to fund the development of its Silangan mine even as it tries to further extend the mine life of its Padcal mine.

The stock rights offering covers up to 842 million common shares for a maximum offer price of P4.81 per share. The actual number of common shares to be issued will depend on the final offer price.

Proceeds will be used for the company’s investment in subsidiarySilangan 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 was initially targeted for Feb. 28 to Mar. 10, 2022.

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.