Philex Mining eyes stake in Macawiwili as part of expansion plans

Pangilinan-led Philex Mining Corp. inked an agreement to explore avenues in preparation for a possible acquisition of shares in Macawiwili Gold Mining and Development Co. Inc. (MGMDCI) which operates an 800-hectare contract area in Itogon, Benguet.

In a regulatory filing to the local bourse, Philex said it signed a term sheet with Macawiwili Gold to outline the clear intentions of both parties to explore commercial, financial, and technical avenues in preparation for possible shares acquisition.

The term sheet was signed by Philex Chairman Manuel Pangilinan and President and CEO Eulalio Austin Jr., and MGMDCI shareholders Michael Escaler, Jose Ma. Lopez, and Felicisimo Feria.

“Our interest to pursue investments in the Macawiwili property is part of our business direction for this year to broaden interest in ‘green materials’ through mergers and acquisitions,” Austin said.

“We need to hit the ground with this at the soonest possible time, considering that this property is adjacent to our Padcal mine and would go a long way in fulfilling company plans for expansion and extension of the life-of-mine of Padcal,” he added.

Philex in December said it would extend the operation of the Padcal mine until December 31, 2027, citing the additional mineable reserves the company identified. It was originally set to stop operations by the end of 2024.

“This is a good addition or extension to the Padcal Mine. I hope that this is the start of something good and that it would ride the wave of higher metal prices in gold and copper,” Pangilinan said.

The Padcal mine is one of the longest operating mines in the country, producing copper concentrates containing copper, gold, and silver.

Philex also operates Philex Gold Philippines Inc., Silangan Mindanao Exploration Co. Inc., and Silangan Mindanao Mining Co. Inc. — DVM, GMA Integrated News