Silangan Mindanao Mining scores $100-M syndicated loan

Silangan Mindanao Mining Co. Inc., a subsidiary of Philex Mining Corp., on Tuesday said it signed a $100-million syndicated debt facility for its Silangan project where development works continue.

The Omnibus Loan and Security Agreement (OLSA) was signed by Philex chairman Manuel Pangilinan and president and chief executive officer Eulalio Austin Jr., along with officials of the Union Bank of the Philippines, Security Bank Corp., the Bank of the Philippine Islands, and BDO Capital Investment Corp.

This comes as the development works in the Silangan Project with the ongoing underground tunneling works, passing the 210-meter mark or about 35% of the distance towards the ore body.

The clearing works and access road to the Tailing Storage Facility (TSF) area are nearing completion, following the issuance of the permit for the construction of the TSF by the Municipality of Sison, Surigao del Norte.

The company last year raised P2.6-billion net proceeds from its stock rights offer (SRO), with the proceeds used to start the development of the first phase of the Silangan Project, which covers the Boyongan Ore Deposit.

The project has an estimated mine life of 28 years based on the declared mineable reserves of 81 million tonnes at 0.67% copper and 1.13 grams/tonne gold, containing an estimated recoverable copper of 993 million pounds and 2.8 million ounces of gold.—AOL, GMA Integrated News