September 13, 2013

Philex hikes capital to P13.81 B

Philex Mining Corp., the country’s largest miner, has upgraded its capital raising plan to of up to P13.813 billion. Specifically, the copper and gold miner will sell 2.466 billion common shares at P5.60 apiece, which is a 38.59-percent discount compared with yesterday’s closing price of P9.12 per share.

Stockholders as of Oct. 16 are allowed to buy new shares, which will be offered from Oct. 21 to Nov. 4. A portion of the estimated net proceeds of P13.54 billion was allotted to pay various debts: the P2.1-billion and $15-million loan from Kirtman Ltd., $15-million loan from Maxella Ltd., $50-million loan from Asia Link B.V., P250-million loan from Bank of the Philippine Islands and P100-million loan from BDO.

Philex will also spend P7.63 billion for capital expenditures and development cost for the Silangan copper and gold project. - WealthSec