Climax Mining unit raises $18.7M for Philippine project

By Christine A. Gaylican
Philippine Daily Inquirer July 20, 2006

http://business.inq7.net/money/topstories/view_article.php?article_id=10742

AUSTRALASIAN Philippines Mining Inc., subsidiary of Australia's Climax Mining Ltd., said it had raised $18.7 million for pre-development and start of construction of its mining facility in the northern province of Nueva Vizcaya in September.

It also reported to the Mines and Geosciences Bureau that it had hired ANZ Bank to lead the debt financing for the project.

The company said it needed $81 million to develop the Didipio copper-gold mine, which has an estimated ore resource of 120 million tons containing 0.61 percent copper and 1.6 grams of gold per ton, and a mine life of 15 years.

"Part of the bank requirements is conducting a thorough due-diligence [audit] of the mining project's social, environment and technical reports," the report said.

The Board of Investments in February gave the Didipio project a "pioneer status," which entitles to an income tax holiday of six years, among other incentives.
The company will export all of its output.

The Didipio project is under a financial or technical assistance agreement (FTAA) with the government, which effectively authorizes the Climax Mining unit to have 100-percent equity in the project.

A Supreme Court ruling in December 2004 said an FTAA scheme does not violate the Constitution, which restricts foreign equity in projects that deal with the exploitation of natural resources to 40 percent.