Philex Mining Completes Financing for Silangan Project with $70M Boost

Philex Mining Corp., under the leadership of the Pangilinan group, has successfully secured a total of $170 million in financing for the development of the Silangan mine in Surigao del Norte, Philippines. This achievement was announced after the company’s subsidiary, Silangan Mindanao Mining Co. Inc., entered into an agreement for an additional $70 million credit facility with local banks. This move comes as a significant step towards the realization of the copper-gold mining project.

The recent financial infusion was facilitated through a deed of accession signed by Philex Mining and Silangan Mindanao Mining executives with Philippine National Bank (PNB), Philippine Bank of Communications (PBCOM), and Security Bank. The arrangement saw SB Capital Investment Corp. as the mandated lead arranger, with PNB and PBCOM serving as joint lead arrangers.

This funding milestone follows a previous agreement in November, where Philex Mining had arranged a $100-million syndicated debt facility with Union Bank of the Philippines, Security Bank, and Bank of the Philippine Islands, with BDO Capital and Investment Corp. acting as the lead arranger.

The completion of this $170-million loan requirement marks a pivotal moment for Philex Mining, building on the momentum from last year’s stock rights offering and capital contributions from the company’s cash reserves. With a successful raise of P2.6 billion from its stock rights offer in 2022, Philex Mining has effectively kick-started the first phase of the Silangan project, focusing on the Boyongan Ore deposit.

Philex Mining is gearing up to initiate commercial operations of the Silangan project by the first quarter of 2025, positioning it among the top three mining ventures in the Philippines. The ongoing development efforts, including the underground decline development now midway to the Boyongan ore body, signify the company’s commitment to bringing this ambitious project to fruition.

The Silangan project’s advancement is a testament to Philex Mining’s dedication to sustainable mining practices and its contribution to the Philippine mining sector’s growth. As the project moves closer to operational status, it promises to be a significant contributor to the country’s mining industry and economic development.