Metals Exploration in deal to explore Philippines copper, gold asset
Metals Exploration PLC on Monday said it has struck an agreement to explore a copper and gold asset in the Philippines, ‘of the best’ undeveloped assets in the country.
Shares in the company shot up 8.3% to 13.75 pence each in London on Monday morning, for a £412.3 million market capitalisation.
The mining company, which also has assets in Nicaragua, said the deal means it has the exclusive right to explore, develop and operate the Batong Buhay copper-gold project.
‘Metals Exploration views Batong Buhay as one of the best, advanced porphyry copper-gold targets in the Philippines,’ the firm said. ‘The project has the potential to be fast tracked to development once exploration and engineering is completed.’
The announcement by Metals Exploration, backed by UK investor Nick Candy, confirms a report from Sky News. Candy owns just shy of a 22% stake in Metals.
Metals said no ‘modern exploration’ has been conducted on the asset, so pre-drilling work will kick off immediately. This includes magnetic and radiometric surveys, as well as geological mapping. It expects a drill programme to begin in the second half of the year.
‘Following extensive due diligence, it is the company’s view that the Batong Buhay project is one of the best, undeveloped advanced porphyry copper-gold targets in the Philippines, having returned significant mineralised widths and grades from historical drill testing and production. The company has evaluated numerous copper-gold targets throughout the country, with Batong Buhay standing out as an opportunity that suits all criteria, particularly its prospectivity and resource size potential which has been de-risked by previous owners,’ Metals Chief Executive Officer Darren Bowden said.
‘With the necessary approvals in place - including from the indigenous peoples’ - and with the support of the Philippine Mining Development Corp, the company can now commence exploration. As a project in which the government holds a direct interest, Batong Buhay has the potential to be fast-tracked to development once exploration and engineering are complete.’
Government-owned PMDC is the asset’s exploration permit holder. Metals will establish a vehicle, in which it will own an 80% stake, to undertake exploration and mining operations. Balatoc (Kalinga) Tribe Inc, tied to the recognised indigenous community, holds the remaining 20% of the Faratuk Exploration & Mining Corp vehicle.
Faratuk will have ‘certain financial obligations’ to PMDC, including a 2% net smelter return royalty during the first 10 years of production. Thereafter, this rises to 3%. An upfront signing fee of around $800,000 payable by Faratuk also forms part of the deal, as well as an annual commitment of $160,000 payable until the royalty comes into effect.
In addition, a further $1.6 million has been ‘allocated to community projects’, including improvements to road access. Faratuk has committed to around $500,000 of minimum exploration and development expenditure in year one and $1.0 million in year two. A five-year programme is to total at least $16.0 million.
Copyright 2026 Alliance News Ltd. All Rights Reserved.