LISTED mining company Benguet Corp. has received P300 million from Red Earth Mineral Resources Corp., a company engaged in surface mining and diversified investments, as partial payment for two private placement agreements.
In a disclosure to the stock exchange on Wednesday, the listed firm said that it signed two separate private placements with Red Earth on Nov. 5, covering 110 million common shares.
The first transaction covers Red Earth’s subscription to Benguet Corp.’s 90 million shares priced at P4 apiece. Broken down, these comprise 53 million Class A common shares and 37 million Class B common shares.
Meanwhile, the second transaction covers Red Earth’s subscription to 20 million common shares — 13 million Class A and 7 million Class B — in Benguet Corp. priced at P4 per share.
“At the signing of the private placement agreements, the company (Benguet Corp.) received from Red Earth the amount of P280 million as partial payment for the first transaction,” the company said.
“The balance of P80 million will be paid after stockholders’ approval of the private placement in the upcoming annual stockholders’ meeting on Dec. 20,” it added.
Red Earth also paid the listed firm P20 million as a deposit for its subscription in the second transaction and is expected to pay the balance of P60 million after the transaction receives approval from the Securities and Exchange Commission.
In a previous disclosure, Benguet Corp. said that the conclusion of the private placement will result in public ownership accounting for 39% of the outstanding capital.
“The additional capital infusion will be used for the development of the Pantingan Gold project, Bolco Gold project, solar project, agribusiness project, and other priority projects of the company,” Benguet Corp. said last week. — Justine Irish D. Tabile
