Manila Mining eyes P895M from stock rights offer next month

Manila Mining Corp. plans to raise around P895 million from a stock rights offering to pay off debts and finance exploration projects.

In a disclosure to the Philippine Stock Exchange, Manila Mining said its board approved a stock rights offering to shareholders next month.

The shares to be issued will come from the firm’s increase in authorized capital stock from P1.2 billion to P1.8 billion.

Shareholders can purchase one share for every two shares held on a record date yet to be fixed by the company, at the price of 1.5 centavos per share. Manila Mining said it is targeting a record date of Aug. 30.

The initial payment of 50 percent is due upon subscription and the balance payable not later than 30 days. Actual record date and offer period will be announced upon PSE approval of the company’s listing application.

Manila Mining is currently in talks with foreign mining companies East Asia Minerals Corp. and Anglo-American Plc. for the joint exploration of its Kalaya-an mining site in Surigao del Norte within the year.

Given the bullish outlook on the mining sector, Manila Mining plans to resume its drilling and milling operations, using a portion of the money to be used by the foreign partner.

The old mine site, which was closed down in 1998, has reserves of half a million ounces of gold and copper.

Manila Mining’s other mining projects include the Anislagan and Macalaya area near Boyongan, Surigao del Norte and the so-called Corridor, which is located north of the Anglo American-Philex deposit.

The company’s principal activity is the exploration and mining of gold, precious and semi-precious metals, ores, minerals and their by-products. Its products are gold-in bullion and copper concentrates.

There has been renewed strong interest in the Philippine mining industry after the Supreme Court upheld the constitutionality of the Mining Act, which allowed foreigners to wholly own large scale mining projects in the country.

The government has approved a minerals development action plan intended to put on stream 23 major mining projects. With the revitalization of the mining industry, it is projected that minerals export could reach $1 billion a year from $800 million last year.