Philex, Bulawan allot P30 million for Negros project

MANILA, Philippines - Philex Gold Philippines Inc. (PGPI) and Bulawan Mining Corp. (Bumico) expect to spend close to P30 million to explore for gold, copper and other mineral deposits over an area of close to 4,381.5804 hectares in Sipalay City and Hinoba-an, Negros Occidental.

PGPI and Bumico are additionally setting aside another P3 million for an Environmental Work Program to provide for mitigating measures to be undertaken to address any possible environmental impacts of the proposed exploration activities in Negros Occidental.

PGPI is 99.9 percent owned by Philex Mining Corp. (Philex), while Bumico is 99.99 percent owned by the Philippine National Bank.

PGPI has an authorized capital of P2 billion and a paid-up capital of P500 million, while Bumico has an authorized capital of P10 million and a paid-up capital of P2.5 million.

Philex, which owns PGPI is now chaired by First Pacific’s Manuel V. Pangilinan, while PNB is controlled by taipan Lucio Tan.

The Mines and Geosciences Bureau (MGB) approved PGPI and Bumico’s EP application for its Sipalay City and Hinoba-an, Negros Occidental exploration project on July 9, 2010.

Philex has a 25-year agreement with Bumico whereby Bumico transferred to Philex “the possession, beneficial use of, development and utilization of the mineral claims and grants to Philex the exclusive right and privilege to take over, as an independent contractor, the working and operation of said mineral claim.

The agreement is renewable for another 25 years.

The initial exploration project area was actually 4,536 hectares.

However, PGPI and Bumico’s target exploration area overlapped the areas covered by mining claims of Colet Mining and Development Corp.

Colet had an approved Mineral Processing and Sharing Agreement for the overlapping areas, thus, PGPI and Bumico’s targeted exploration area was reduced to 4,381.5804 hectares.