PSE suspends trading in three mining firms ahead of joint venture deal

MANILA, Philippines -  The Philippine Stock Exchange (PSE) suspended yesterday trading in copper-gold producer Philex Mining Corp., Manila Mining Corp. and Lepanto Consolidated Mining Corp. ahead of a deal being worked out by the three top mining firms.

In separate disclosures to the local bourse, Philex, Manila Mining and Lepanto said they sought the immediate trading suspension of their shares to give way to a material disclosure they would make in the next two days. Resumption of trading, they said, would be made after they have made the necessary disclosure.

Philex, which recently acquired a five percent stake in Lepanto from two investment banks for P1.43 billion, earlier said it was close to sealing a joint venture deal with Manila Mining involving the latter’s Kalayaan copper-gold project.

Manuel V. Pangilinan, chairman of Philex, earlier said the firm will be taking a 60 percent stake in the project while 40 percent will be retained by Manila Mining.

The 2,463-hectare Kalayaan mine is adjacent to Philex’s Boyongan mine in Agusan and Surigao provinces in Mindanao.

Philex acquired full ownership of the Boyongan copper-gold project in Surigao del Norte after buying the 50-percent stake of Anglo American Exploration BV and Anglo American Exploration (Philippines) Inc. for $55 million.

Manila Mining has two existing mining lease contracts with the government in Surigao del Norte and three mineral production sharing agreements covering Surigao del Norte and Agusan del Norte. It has a wholly-owned subsidiary, Kalayaan Copper-Gold Resources Inc.

The company started mining operations in Placer, Surigao del Norte in 1981 and produced gold bullion through a carbon-in-pulp plant until 2001. It produced copper concentrates (containing gold, silver and copper) from a copper flotation plant until July 2001, when it suspended mining and milling operations after its authority to operate its tailings dam expired.

Philex, meanwhile, owns and runs the Padcal mine in Benguet province, the only remaining gold-copper company operating in the country.

Pangilinan earlier said Philex was open to acquiring more shares in Lepanto if there are more shares available.