Publicly listed Philex Mining Corp. said Friday it now has full control over the Bongoyan copper-gold project in Surigao after it bought out partner Anglo American Plc. in the venture.
In a statement to the local bourse, Philex said it has acquired the 50 percent stake of Anglo American in the mine project through 81-percent owned subsidiary, Philex Gold Philippines Inc.
The acquisition was done via a share and asset purchase agreement covering the purchase by Philex of the shares of Anglo in the joint venure companies, Silangan Mindanao Mining Co. Inc. and Silangan Mindadao Exploration Co. Inc., as well as the acquisition of various assets, receivables and obligations of Anglo in the project for a total consideration of $55 million.
"(The transaction) paves the way for the continued development of Boyongan and the adjacent areas expeditiously and for the best interest of Philex," said Renato Migriño, Philex vice president for finance.
Philex and Anglo American earlier argued about the viability of the Boyongan project. A previous study conducted by the latter showed the mine would not produce an acceptable rate of return.
The 25,184-hectare Boyongan project was estimated by the government to have ore reserves of 300 million tons.
Philex said production at Boyongan could start by 2012.