Toronto-listed OceanaGold Corp has filed for an initial public offering (IPO) of up to 7.9 billion Philippine pesos ($141.30 million) for its subsidiary operating a gold mine in the Philippines.
OceanaGold plans to sell up to 456 million common shares or a 20% stake in OceanaGold Philippines Inc at a maximum price of 17.28 pesos each to comply with a listing requirement for a mining contract, the miner said in a statement late on Friday.
The Philippines, a major nickel ore supplier to top metals consumer China and with substantial copper and gold reserves, is seeking to revitalise its mining sector to boost the economy.
OceanaGold aims to tap new Filipino and international shareholders through robust cash flow and dividend payments from its Philippine gold and copper mine, OceanaGold CEO Gerard Bond said in a statement.
It hired BDO Capital & Investment Corp and CLSA Ltd to facilitate the IPO targeted to be completed before July.
In Philippine IPOs, the maximum offer price is a placeholder amount included in the filing to securities regulators. It is not uncommon to cut the maximum offer price late in the IPO process.
In 2021, OceanaGold renewed its contract for the Didipio gold and copper mine in northern Philippines for another 25 years.
The Didipio mine started commercial operations in 2013 and has a mine life of up to 2035. It holds 1.1 million ounces of gold and 140,000 tonnes of copper as of end-2023, with opportunities to find more resources through exploration projects.
($1 = 55.91 Philippine pesos)
(By Neil Jerome Morales; Editing by Diane Craft)
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