Benguet Corp allots P162 M for health care facility in Rizal

MANILA, Philippines - Listed miner Benguet Corp. is allocating P162 million to set-up a branch for its health care services subsidiary in Rizal as well as to support its mining operations.

In a disclosure to the Philippine Stock Exchange yesterday, Benguet said that of the P250 million to be raised from the capital infusion of RYM Business Management Corp. (RBMC), P162 million would be used to support the miner’s work program.

In particular, the firm said P25 million would be used to establish a branch of its wholly-owned subsidiary BenguetCorp. Laboratories, Inc. in Taytay in Rizal.

Benguet Corp. Laboratories provides out-patient medical and laboratory services.

The miner also said it intends to spend P48 million to purchase various equipment for its gold mining operations, and use P89 million as capital costs for the Greater Acupan Surface Drilling Project.

Last month, the company’s board of directors approved the private placement of RBMC of up to P250 million in exchange for 27.778 million common shares of Benguet at the mutually agreed price of P9 per share.

The subscription is divided into two transactions.

The first part of the transaction, which should be completed within 15 days from the date of signing of the Memorandum of Agreement, would involve the full payment of RBMC of P162 million to acquire 18 million common shares consisting of 7.169 million Class A shares and 10.831 million Class B shares.

The shares are the remaining unissued shares of the company.

The second transaction will be in the form of an option for RBMC to subscribe to 9.778 million common shares after Benguet obtains approval to raise its authorized capital stock.

Benguet operates the Sta.Cruz Nickel Project in Sta. Cruz in Zambales and the Acupan Gold Project in Itogon in Benguet.

Apart from mining and healthcare services, Benguet is also engaged in trucking and warehousing through its subsidiary, Arrow Freight Corp.; trading industrial equipment and supplies through Benguetrade Inc.; and real estate development and lime kiln operation through BMC Forestry Corp.

As of the first semester, net earnings of Benguet reached P36.6 million, down from the P184.9 million in the same period last year.

The lower earnings was attributed to lower metal prices that prevailed during the first semester at $1,546.82 per ounce for gold and $34.51 per ton for nickel, compared to $1,614.14 and $38.04, respectively, in the same period last year.