Alsons in $99.4-M private placement to hike Indophil stake

MANILA, Philippines - Alsons Power Holdings Corp. (APHC) will put in an additional $99.4 million into Australia-listed Indophil Resources, which holds a 37.5 percent stake in Southeast Asia’s largest undeveloped copper-gold prospect.

APHC, controlled by the Alcantara family, will undertake a private placement to boost its Indophil holdings to 19.99 percent, equivalent to two seats in the mining company’s board.

The placement will involve two tranches. The first would entail the issue of 66.66 million shares on Dec. 29, 2011 while the second would involve 141 million shares to be issued on February 2012.

Indophil said this move would significantly strengthen a strategic alliance focused on supporting the Tampakan project through final approvals, to construction and first production.

Indophil is the smaller shareholder in the Tampakan deposit in South Cotabato. Switzerland-based Xtrata owns 62.5 percent and is the project manager of Tampakan.

Indophil estimates it will cost $5.9 billion to develop the deposit, with production starting in 2016.

At present Tampakan is believed to contain 13.9 million tons of copper and 16.2 million ounces of gold, adding a revised mineral resource is expected to be issued by Xstrata in the coming days.

The lode is projected to produce 375,000 tons of copper and 360,000 ounces of gold per year over 17 years, with potential to extend the operating life of the mine.

At the same time, Indophil said it was considering also listing its shares in the Philippines.

“Indophil is considering seeking an additional listing on the Philippine Stock Exchange in 2012,” Indophil said.

Indophil stock rose nearly 10 percent to A$0.46 against a modest 1.3 percent gain by the wider Australian market.