http://business.inq7.net/money/topstories/view_article.php?article_id=10546
Inquirer
0719/2006

GOLD producer Lepanto Consolidated Mining Co. announced Tuesday that its board had approved a one-for-eight stock rights offer that it said could generate P639 million.

The company had a one-for-five rights issue in October in which it raised P850 million. It said it used the proceeds to retire debts, pay back shareholder advances and cover utilities-related costs.

In the new offer, subject to regulatory approval, shareholders could subscribe one common share for every eight shares they hold. The company said the offer period might start Sept. 11 and the record date might be Aug. 16.

It said proceeds would be used to pay P219 million in debts maturing this year, pay back $3 million to shareholders for advances made to Canadian mining firm Ivanhoe, and to pay employee-related accounts.

Lepanto said it would resume production in September at its copper-gold mine in the northern mountain town of Mankayan, which has been shut since 2001.

Development cost is estimated at more than P1 billion, the company said. The mine is projected to yield 7,000 tons of copper concentrate in the first year of production, it said.

Copper prices have risen to a high of $3 a pound this year from a low of 70 cents in 2001. The low copper prices made it difficult to continue operating the copper mine in 2001.

Lepanto also said it expected a gold output of 65,000 ounces this year, compared with 55,749 ounces in 2005. With INQ7.net