MANILA - Hong Kong-based First Pacific Co. Ltd. wants to raise its stake in Philex Mining Corp. but this will depend on the financial needs of the copper-gold producer.

At the moment, Philex is still awash with cash from mature mining operations and the sale of treasury shares last November, said First Pacific managing director Manuel V. Pangilinan, who was elected as new chairman of Philex during the company's annual meeting on Wednesday.

"We want to raise our stake in Philex but this will depend on its financial requirement. We are ready to support Philex (if it needs more capital)," Pangilinan said.

Pangilinan added that although First Pacific intends to use Philex as its main vehicle for mining investments in the country, it remains on the lookout for other mining interests.

"We are always open to investment opportunities," he remarked.

First Pacific currently owns 22 percent of Philex. Earlier, it bought, through wholly-owned unit Asia Link BV, 778.62 million treasury shares or 20.06 percent of the mining firm for P6.16 billion.

To substantially raise its Philex stake, First Pacific will need the approval of other shareholders, including pension fund Social Security System, the Ongpin group and the group of former Philex chairman Walter Brown.

Philex owns and runs the Padcal mine, the only remaining gold-copper mine operation in the country. The mine is located in Tuba, Benguet.

In April, the company said it may need $500 million to develop and operate another gold and copper project in Boyongan in southern Mindanao island.

Philex expects to complete a pre-feasibility study on the Boyongan prospect by the end of 2009 before advancing to a definitive feasibility study for a firmer estimate of the capital cost. With a report from Reuters