http://www.manilatimes.net/national/2006/july/21/yehey/business/20060721bus8.html

PUBLICLY listed mining firm Benguet Corp. mulls over a number of special purpose vehicles it may create to get more funds for its mining projects.

Benjamin Philip Romualdez, Benguet president and chief executive officer, said the drafting of the Philippine Minerals Reporting Code (PMRC), an independent mining evaluation reporting system on exploration and development, is seen to encourage listed companies to create special-purpose vehicles (SPVs) for capital raising.

“It’s easy to raise capital once you know what you’re going to raise it for. Listed mining companies are looking at the possibility of creating special purpose vehicles, for individual projects to raise capital to get those projects moving. The JORC [Joint Ore Reporting Code] would be beneficial for companies like Benguet,” he said.

Romualdez cited the company’s gold, nickel and copper projects all over the country that needs an arrangement such as SPV to be fully developed.

An SPV, which is also known as bankruptcy-remote entity, limits its operations to the acquisition and financing of specific assets.

The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt. It is also designed to
serve as a counterparty for swaps and other credit sensitive derivative instruments.

Romualdez also reported that the Benguet’s shares remain under suspension owing to its failure to submit its annual report and first-quarter report to regulators.

“The difficulty lies with adopting the International Accounting Standards and we have yet to submit reports next month.”

Stakeholders are expecting to adopt the PRMC in December this year and scheduled workshops would serve as consultation meetings for professionals and other members to incorporate their inputs on the PRMC.
–Cheryl M. Arcibal