Manila Mining earmarks P200M for drilling program

Manila Mining Corp. has set aside P200 million for a drilling program aimed at determining the viability of resuming exploration activities on its mining site in Surigao del Norte.

Manila Mining said the program involves diamond and reverse circulation drillings on its properties and metallurgical testing.

Funding will come from its proposed stock rights offering, which is expected to generate P895 million. The shares to be issued to shareholders will come from the company’s increase in authorized capital stock from P1.2 billion to P1.8 billion.

Other proceeds from the offering will be used to settle debt.

Shareholders can purchase one share for every two shares held as of Aug. 30, at P0.015 per share.

Manila Mining is 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, hopefully, within the year.

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.

In the six months ending June this year, Manila Mining incurred a net loss of P45.4 million or 27.8 percent lower than the previous level’s P62.87 million. Cost and expenses, however, fell to P45.4 million from P62.87 million. — Zinnia Dela Peña