Reuters reported that the Philippines' Atlas Consolidated Mining and Development Corporation is seeking to raise USD 390 million via four phase equity and convertible notes issue to fund its full takeover of unlisted gold and copper miner Carmen Copper Corporation.

Carmen Copper operates the 1,674 hectare Toledo mine complex in central Cebu province. The site is estimated to contain about 1.5 billion tonnes of ore or about 5 million tonnes of copper.

Company officials said that Carmen Copper plans to spend USD 200 million to more than double annual capacity to 100,000 tonnes of copper metal in concentrate in 2 to 3 years from the current 42,000 tonnes at a cost of USD 200 million.

Mr George Bujtor ED of Carmen Copper said that "Toledo had a large resource base and the mine life could be 30 or 40 years, depending on the throughput rate. Output had already risen by 50% from last year on rising demand from main buyers China and South Korea.”

Atlas plans to sell more than 700 million shares about 33% of its fully diluted outstanding capital stock to buy the 45.54% of Carmen Copper held by CASOP Atlas Corporation and CASOP Atlas BV. Atlas will then own all of Carmen Copper.

The company said that in a regulatory filing it would sell the shares at 19.56 pesos each, a premium of nearly 9% over the 30 day volume weighted average price, via private placements. In one of the four fundraising tranches, it plans to sell 316.2 million shares to raise USD 142 million in a private placement managed by BDO Capital and Investment Corporation.

(Sourced from Reuters)