Philex tapping local, foreign banks to fund $1-B copper-gold mine

Philex Mining Corp. is finalizing a package involving up to 40 percent equity and 60 percent financing to finance its $1-billion Silangan copper-gold project in Surigao del Norte. “We’re opening up to European and Asian banks. There are a few interested local banks but foreign banks are more aggressive," said Philex vice president for business development Denis Lucindo. “Once we get hold of the funding requirement," the company will start development works at the site by mid-2012, Luncindo said. He did not name the interested financiers. Philex has so far spent $92 million in pre-development expenditures that covered the $55 million to buy the mining claim of Anglo-American Exploration (Philippines) Inc. and $37 million in exploration costs, the company said. The Silangan project has an estimated 20-year mine life. Its Boyongan and Baguyo orebodies contain as much as 9 million ounces of gold and 5 billion ounces of copper, with a combined estimated value of $22 billion, according to Philex. — VS, GMA News