Benguet Corp set to raise authorized capital stock
Benguet Corp. has secured the go-ahead from stakeholders to increase its authorized capital stock as the listed company gears up to expand its foothold outside the mining industry.
In a stock exchange disclosure, Benguet said it secured the green light for an increase to P3.18 billion from P784.8 million, during the firm’s annual meeting of stockholders conducted via livestreaming.
Benguet will file with the Securities and Exchange Commission, the application for a higher authorized capital stock.
“The purpose of the capital increase is for the company to conduct a stock rights offer (SRO), stock option grants, and declare stock dividends in the future,” it said.
A company such as Benguet carries out an SRO to provide existing shareholders an opportunity to purchase more shares at a discount. Proceeds from this transaction are used to settle debts or bankroll projects in the pipeline.
In a stock option grant, an entity offers employees, consultants or executives the right to purchase a certain number of its shares at a predetermined price, subject to certain conditions.
Expansion
This developed as Benguet signified its intention to increase its activities not only in the mining sector but also in other industries such as renewable energy after settling its decades-long debt.
Benguet disclosed it is focusing on its gold prospects as prices of the yellow metal soar.
Exploration
The company initiated the exploration of its gold concession area in Zamboanga Sibugay and is on the lookout for other copper-gold prospects. It is also studying a new technology for higher recovery of its gold tailing project in Itogon.
Likewise, the firm continues to implement its drilling program at the Pantingan gold prospect in Bataan. It approved a budget of P50 million to support Phase Two of the drilling and exploration plan.
Last October, Benguet secured the Department of Environment and Natural Resources’ approval to extend its mineral production sharing agreement for another 25 years, which it expects will lead to the declaration for mining project feasibility.
Benguet has an operating agreement with Balanga Bataan Minerals Corp. signed in March 1996. It covers 1,410 hectares situated in the towns of Bagac, Mariveles and Limay in Bataan.
The mining firm unveiled its plans to expand its portfolio to include construction, real estate, water, agribusiness and renewables as it became debt-free with the settlement of all its outstanding debts in October.
