Pangilinan-led Philex Mining Corp. may raise another $400 million to finance the second phase of its forthcoming Silangan Mine project in Mindanao.

Philex chairman Manuel V. Pangilinan said the mining firm may begin considering the start of the Phase 2 of the Silangan gold and copper mine before the start of its commercial operations next year.

'And who knows, we may do a follow-on in the late 2025 or 2026. It would be at least the same (of the Phase 1) or could be bigger than the (Phase 1),' Pangilinan told reporters on the sidelines of the firm's recent annual stockholders' meeting.

The fundraising for the Phase 2 of Silangan project would 'most likely' be a mix of debt raising and equity with a ratio of 70:30 in favor of debt raising, Pangilinan said.

Philex is keen on producing the first metal from Silangan mine, which would be gold first, by the last quarter of next year. The timeline has been delayed from the earlier target of first quarter of 2025 following delays in the conclusion of loan facility and delivery of processing plant equipment for the mine's phase one.

Earlier this year, Silangan completed a loan facility of $170 million to ensure that it would start commercial operations next year.

Philex secured a $100-million syndicated debt facility with various lenders in 2023 for the Silangan mine project.

In February, the firm secured an additional $70 million through a syndicated credit facility by local banks.

The company earlier said the initial capital cost to develop the starter mine is around $224 million, which would be financed by a combination of capital infusion from the company, equity via stock rights offer and debt.

Philex raised P2.6 billion in 2023 by offering shares to existing stockholders. The amount was used to bankroll the commencement of the development of Phase 1 of the Silangan project.

The Phase 1 of the Silangan project has an estimated mine life of 28 years based on its declared mineable reserves of 81 million metric tons, resulting in a recoverable copper of 993 million pounds and 2.8 million ounces of gold.

The Silangan copper and gold project is being touted as one of the big three mining projects in the country.

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