First Pacific extends $200-M credit facility to Philex

MANILA, Philippines – The parent firm of Philex Mining Corp has extended a US$200 million (about financing facility for the Philippine operations following temporary closure of its flagship copper-gold mine in Padcal, Benguet.

In a statement issued to the stock exchange late Friday, November 16, Hong Kong-based First Pacific Company Limited (First pacific) announced that the loan, which will be coursed through a wholly-owned subsidiary, will help fund fund capital expenditures in its Padcal mine and its new Silangan copper-gold project in Surigao del Norte.

“In order to fund, in part, the Company’s current operations, the preparatory activities prior to the resumption of operations, and the remediation and clean-up programs, Philex’s single biggest shareholder, First Pacific Company Limited has agreed to provide Philex an aggregate facility of up to US$200 million,” Philex told the exchange.

“As part of such facility, on November 9, 2012, First Pacific, through an indirect wholly-owned subsidiary, granted a PhP 2.1 billion loan to Philex,” the mining firm added.

The Padcal mine in Benguet mountain province — currently the only operating mine of Philex — has been closed since August following a leak at its tailings pond.

The Silangan mines in Mindanao are not yet operating.

“A substantial portion of the proceeds of this US$200 million facility will be applied to partially fund the requirements of Philex’s new Silangan mine in Surigao del Norte in order to ensure its continued implementation in accordance with Philex’s commitment to the Philippine Government. – Rappler.com