HONG KONG-based conglomerate First Pacific Co Ltd. has added the country’s largest mining firm to its burgeoning investment portfolio.

On Friday, the company reported it acquired for P6.16 billion a 20.16-percent stake in listed Philex Mining Corp.

In a statement to the stock exchange, Philex said it has signed a deal with First Pacific for the sale of 778,444,065 common shares at P7.92 each, a premium over Philex’s Friday closing price of P7 per share.

“The total consideration of P6.16 billion for the purchase is going to be transacted in two equal tranches—the first 10.08 percent on October 13 and the second 10.08 percent no later than November 30,” said Renato Migrino, Philex vice president for finance.

He said the entry of a strategic investor will provide the mining company with a strong partner allowing it to pursue the development of the Boyongan copper-gold project and the various claims and prospects that will help strengthen the company’s portfolio.

“It’s good for Philex as confidence was given by First Pacific to the mining company. Moreover, with Boyongan now under Philex, the potential for sustained growth is expected,” said DBP Daiwa Securities head for research Ron Rodrigo.

Under the same agreement, First Pacific managing director Manuel V. Pangilinan will assume one of the two board seats allotted to the Hong Kong firm.

Two weeks ago, Philex said it acquired the 50-percent stake of Anglo American Exploration (Philippines) BV in the Boyongan copper-gold mine in Surigao del Norte for $55 million.

In a disclosure to the stock exchange, Philex said the acquisition gave the company full control over the property. Philex Gold Philippines Inc., an 81-percent owned unit, owns the other 50-percent interest in the mine.

The acquisition involved the sale of the shares owned by Anglo American in joint-venture companies, Silangan Mindanao Mining Co. Inc. and Silangan Mindanao Exploration Co. Inc., to Philex Mining.

Anglo American is a wholly owned subsidiary of UK-based Anglo American Plc.

The assets include four mining tenements and a mineral production sharing agreement over five parcels, including the Boyongan deposit in Surigao del Norte.

Philex Gold and Anglo discovered the Boyongan deposit in 2000 in a 25,184-hectare area.

First Pac is an investment and management company with operations located in Asia. Its principal business interests relate to telecommunications, consumer food products and infrastructure.

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