Philex Mining Corp., and unit Philex Gold Philippines Inc. have taken full control of the Boyongan copper-gold property in Surigao del Norte after buying out the Anglo American group.
In a disclosure to the Philippine Stock Exchange, Philex said it acquired the 50 percent interest of Anglo American Exploration (Philippines) BV and Anglo American Exploration (Philippines) Inc. in the Boyongan copper-gold project for $55 million.
The acquisition was done via a share and asset purchase agreement covering the purchase by Philex of the shares of Anglo in joint venture companies Silangan Mindanao Mining Co. Inc. and Silangan Mindanao Exploration Co. Inc. and the acquisition of various assets, receivables and rights and obligations of Anglo and Anglo Philippines in the project.
Philex said this would “pave the way for the continued development of the Boyongan site and the adjacent areas expeditiously and for the best interest of Philex.”
The acquisition followed a pre-feasibility study completed by Philex which showed a positive net present value of $150 million and a payback of 3 1/2 years, using long-term metal prices of $2.75 per pound for copper and $700/ounce for gold.
Based on the pre-feasibility study, the mine life could be up to 14 years at a constant millfeed rate of five million metric tons of ore a year.
The study showed that the Boyongan site had a proven mineral reserve of 65.8 million tons at 0.87 percent copper and 1.39 grams/ton gold. The company also said there was the possibility of accessing additional mineralized ground in the northwest portion of the ore body.
Philex and Anglo American, the world’s fourth-largest diversified mining group, have had differences in their assessment of the viability of the copper and gold project.
With the life of Philex’s mine in Padcal, Benguet set to expire in 2014, the Boyongan mine can ensure that Philex can continue mining operations for another 15 to 20 years.