Manila Mining says deal with Philex on Kalayaan 'done'

MANILA, Philippines - Lepanto Consolidated affiliate Manila Mining Corp. is hopeful that it has a “done deal” with Philex Mining regarding the Kalayaan property.

In its annual stockholders’ meeting yesterday at the Lepanto Building in Makati, Manila Mining chairman and chief executive Felipe U. Yap their deal with Philex Mining may be considered done subject to the completion of legal documentation.

Yap said the deal may be concluded next month.

Yap said he and Philex Mining chairman Manuel Pangilinan “have a gentleman’s agreement which can only be delayed, but not broken.”

Manila Mining is hoping that with the proceeds of its deal with Philex, it can resume mining operations at its Placer mine with an initial production of 10,000 tons of ore a day that will enable it to produce up to 280 ounces of gold a day.

According to Segundo A. Villanueva, engineering head of Manila Mining, around P900 million would be needed to rehabilitate operations at the Placer mine site.

Villanueva said initial studies on converting inferred resources to reserve at the Placer mine site still have to be verified by a “competent person” after which a bankable feasibility study will have to be made.