LEPANTO Consolidated Mining Co. has cut the share price of its planned stock rights offering (SRO) to P0.12 from P0.14 apiece.
In a disclosure on Monday, the firm said it will offer 16.8 billion shares instead of its original proposal of 14.43 billion shares. The move brings down the SRO size to P2.016 billion from P2.02 billion.
“The offer shares will come from and support the increase in the company’s authorized capital stock to P9 billion from P6.64 billion. Given the SRO, there will be necessary adjustments to the company’s share price and outstanding shares that would take place on ex-date,” Lepanto added.
It also noted that the change was made “in consideration of present market conditions.”
Proceeds from the offer will be used to fund the company’s exploration, drilling, and other capital expenditures; settlement of debts; and retirement and other employee benefits.
The firm also said that the SRO has not yet been filed with the Philippine Stock Exchange and is still subject to regulatory approvals.
Lepanto currently operates the Victoria project from which it produces gold doré. In 2017, it commenced commercial operations of its copper-gold project.
Its subsidiaries include Shipside, Inc.; Diamond Drilling Corp. of the Philippines; Lepanto Investment and Development Corp. (LIDC); and Far Southeast Gold Resources, Inc.
Through LIDC, the company owns 25% of Diamant Manufacturing and Trading Corp., a manufacturer of industrial diamond tools for mining exploration, marble cutting, and the construction industry.
In the second quarter, the firm’s net loss grew to P152.87 million from P100.12 million the year before.
At the stock exchange on Monday, Lepanto shares declined by 5.30% or P0.007 to close at P0.125. — Luisa Maria Jacinta C. Jocson