Lepanto shares up 25%

MANILA, Philippines - Listed miner Lepanto Consolidated Mining Company yesterday announced that majority of the leaders of the indigenous people in communities surrounding its Far Southeast Gold project in Benguet have agreed to the issuance of a Financial or Technical Assistance Agreement (FTAA) for the project.

The announcement pushed Lepanto share prices up 25.45 percent at close of trading yesterday.

In a regulatory filing, the company said 84 percent of the community elders and leaders of the indigenous groups in barangays in Mankayan, Benguet who voted during a consultation meeting on July 27, voted in favor of the issuance of an FTAA to its subsidiary Far Southeast Gold Resources, Inc. (FSGRI).

“The taking of the vote is a significant step in the Free and Prior Informed Consent (FPIC) process, a prerequisite to the issuance of an FTAA to FSGRI, owned by Lepanto (60 percent) and Gold Fields Switzerland Holding AG (40 percent),” the company said in the filing.

Goldfields has the option to increase to 60 percent its interest in FSGRI upon the conversion of the property’s mineral production sharing agreement (MPSA) into an FTAA.

Lepanto Consolidated Mining Company intends to acquire within the year all the requirements needed for the conversion of its MPSA for its Far Southeast gold project in Benguet into an FTAA within the year.

Should the government approve the conversion of the MPSA to an FTAA for the Far Southeast project, the lifespan of the project could be extended by another 25 years.

Lepanto recorded a lower net income of P251 million in 2012 from P254 million a year ago.

Although tonnage was higher, the ore grades recovered were lower.