Philex raises $170 M for Silangan project

Philex Mining Corporation’s wholly-owned subsidiary Silangan Mindanao Mining Co. Inc. has raised $170-million funding requirement for the development of its Silangan project.

In a disclosure to the Philippine Stock Exchange (PSE) the firm said it has signed a Deed of Accession for an additional $70 million with lenders who syndicated the credit facility.

Artist's perspective of Silangan project

The lenders included Philippine National Bank (PNB), Philippine Bank of Communications (PBCOM), and Security Bank Corporation, with SB Capital Investment Corporation as Mandated Lead Arranger, and PNB and PBCOM as Joint Lead Arrangers.

Philex noted that 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. 

Last year, the company signed the Omnibus Loan and Security Agreement for a $100-million syndicated debt facility with Lenders, namely Union Bank of the Philippines (UBP), Security Bank Corporation and Bank of the Philippine Islands, with BDO Capital and Investment Corporation as Mandated Lead Arranger and UBP as Co-Lead Arranger. 

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.

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.