Toronto-listed OceanaGold files for Philippine subsidiary's IPO

OceanaGold

03/02/2024 24:47

MANILA, Feb 3 (Reuters) - Toronto-listed OceanaGold Corp
 OGC.TO  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)

 (Reporting by Neil Jerome Morales; editing by Diane Craft)
 ((neiljerome.morales@thomsonreuters.com))