Process plant
Process Plant
Emergency Stockpile
Emergency stockpile
Process Plant
ASTER and Sag mill sections of the Process Plant
CIL tanks
Neutralization tanks
Neutralizaton tanks
Air-Water services
Air/Water services
RSI bridge
Bridge that will hold the RSI pipes
RSI pipes
Installation of pipes leading to RSI
BIOX laboratory
BIOX laboratory
BIOX laboratory
Switch yard
Mine access road
Mine access road
Safety berm placed along mine access road.
Safety berm placed along mine access roads.
Slope rehab
Slope rehabilitation
Gabion wall to protect river from flooding
Gabion wall to protect river from flooding
female driver
Female driver driving Komatsu HB785-7
Power lines
Power lines in full operation
Fully constructed road rehabilitation
Fully constructed road rehabilitation
Water system
Slope rehabilitation along the processing plant site
Slope rehabilitation along the processing plant site
Regular water quality, air and noise monitoring are conducted within the FTAA area
Regular water quality, air and noise monitoring are conducted within the FTAA area
The company donated 1 Million coffee seedlings for the National Greening Program of the Philippine government.
Company donated 1 Million coffee seedlings for the National Greening Program of the Philippine government
Company-sponsored student scholars visiting the project site are given an orientation by a senior geologist
Two scholars of the company recently finished college education
Two scholars of the company recently finished college education
Community pharmacy and medical clinic funded by the company to cater to health needs of the community.
School children beneficiaries of feeding program
Basic Learning Program are given to adults who were not able to go to regular school
Aside from jobs, the community are given livelihood to help them stand on their own feet after the project decommissions
Animal dispersal as part of the livelihood program for the community
Medical mission, feeding program and other program for the benefit of the community

Latest News

13/06/2016 -- Runruno Gold Dore PourRead More
25/05/2016 -- Annual Results 2015Read More
25/05/2016 -- Notice of Annual General MeetingRead More
25/05/2016 -- Chairman’s Letter to ShareholdersRead More
25/05/2016 -- Form of Proxy for AGMRead More
11/05/2016 -- Runruno Gold Project updateRead More
07/03/2016 -- Partial Suspension Order UpdateRead More

Metals Exploration Plc


Corporate, Financial and Operational Review
26 May 2016

Metals Exploration plc (AIM: MTL) Metals Exploration plc (AIM: MTL) is pleased to provide an update on matters relating to the construction and development of its Runruno gold-molybdenum project ("the Project") in the Philippines .



  • Equipment and construction materials continued to arrive throughout the reporting period.
  • Construction activity and final handover of the constructed project to the operating team was completed in November 2015.
  • Staged dry and wet commissioning of processing plant and associated operations commenced in June 2015 and continued through the second half of the reporting period.
  • The project was fully permitted with in excess of 400 permits from various regulators by January 2016.
  • Super Typhoon Lando (known internationally as Koppu) struck Central and Northern Luzon in mid-October.
  • Following a site inspection into water damage caused by the typhoon, the Company’s Philippine subsidiary company, FCF Minerals Corporation, was issued with a Partial Suspension Order by the Mines and Geosciences Bureau ("MGB") to suspend construction works at the Residual Storage Impoundment and Malilibeg Dump Site areas belonging to the Runruno project.
  • Working closely and diligently with the MGB to complete a programme of rehabilitation and enhancement works, the Partial Suspension Order was lifted post-period end in April 2016.
  • Ore commissioning and debugging of the processing plant and associated operations commenced post period end in May 2016.
  • No material health and safety incidents experienced throughout the reporting period.


  • Mr Lucian Eduard Simovici joined the Board of Directors as a Non-Executive Director in January 2015.
  • The Company’s average number of personnel and full-time workforce numbers during the period were 677.
  • Launch of a wide variety of community based programmes to ensure the positive impacts of the Project elevate the economic status of the company’s host community.
  • Financial

    • Cash and cash equivalents of £10.969 million (US $16.261 million) at period end.
    • US $83 million debt facilities provided by HSBC and BNP Paribas were fully drawn down during the period.
    • Equity of US $14.447 million raised during the period, via a share placing of US $5 million and an open offer of £3 million, together with a loan facility of US $5 million. Funds were raised for general corporate and working capital requirement, and to complete the project.
    • An additional equity raise of US $6.2 million was completed post period end, in March 2016 to ensure the Company’s short term funding needs were met. The total amount of debt and equity raised within the period and post period end is approximately US $20.647 million.
    • An initial rescheduling of capital repayments to funders regarding the Company’s senior debt facility was completed in the period.
    • The auditors drew attention to the Going Concern principle by way of emphasis in their report on the statutory accounts for the year ended 31 December 2015.
    • FCF Minerals Corporation has a US $2.181m top-up payment to make to a Debt Service Reserve Account by 30 May 2016 latest and this will be funded out of the Project’s funds.
    • As a result of the delay experienced in commencing commercial operations, negotiations continue with funders with regards to the Company’s existing debt repayment schedule to ensure the project is not in technical breach through a default on payments due on 30 June 2016.
    • Ian Holzberger, Executive Chairman, commented:

      "I would like to thank the ongoing support of shareholders that has given the Project the opportunity to reach its level of operational readiness that could not otherwise be possible".

Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with particular focus on the Philippines.

The Company’s principal asset is the Runruno Gold-Molybdenum Project on the island of Luzon in the northern Philippines. The Company acquired the project in February 2005 and recently increased its interest in the project to 100%.

Work to date has a defined mineral resource of 1.39 million ounces (Moz) of gold, and 25.6 million pounds (Mlb) of molybdenum with 1,050,000oz gold reporting to the Measured and Indicated categories and 900,000oz gold within the Mining Proven & Probable Reserve category. For further information please see the Runruno Resource page.

In October 2011, the Runruno Declaration of Mining Project Feasibility ("DMPF") was approved. This paved the way for the Project to move forward to development and construction phase. Early project development works have began in January 2012.

In May 2010 the Company announced the results of the Runruno project Feasibility Study which confirmed the viability of the project, projecting average production of 96,700oz of gold per annum over a mine life of 10.4 years, at an average forecast operating cost $477/oz gold before any molybdenum credits. The capital cost is forecast to be US$149.3 million, with payback within 3.5 years at US$1,000/oz gold. The Runruno project will be an open pit operation, and will use the proven BIOX® and carbon in leach processes to recover gold and molybdenum.

In March 2010 the Company announced the award of the Environmental Compliance Certificate (ECC) for the Runruno project, which was issued after satisfactory evaluation of the project’s Environmental Impact Statement by the Philippine Environmental Management Bureau. The ECC process was conducted with the full participation and involvement of the local community, and under the ECC the Company is committed to implement measures to protect and mitigate against any adverse impacts on the health and welfare of community and the environment. Securing the ECC is a significant point, following the award of the Financial or Technical Assistance Agreement, demonstrating continued support from the Philippine Government for the development of the Runruno project.

In October 2009 Metals Ex reached an important milestone as the Financial or Technical Assistance Agreement (FTAA) was signed by Executive Secretary Eduardo Ermita on the authority of the President of the Philippines. Under the terms of the FTAA, FCF Minerals, the Philippine subsidiary which operates the Runruno Project, is granted the exclusive right for 25 years to explore, mine, process and export minerals from the licence area. In exchange for this right, FCF is required to commit a minimum investment of $50 million in project development, much of which will be spent on local infrastructure benefiting local communities.

Metals Exploration works hard to maintain excellent relations with the local communities in the project areas. FCF Minerals promotes social and economic development through the Runruno Livelihood Foundation, a trust funded jointly by the Company and the Philippine government. We also conduct all our operations in a safe and environmentally responsible manner to industry best practise standards.

Metals Exploration Plc is publicly listed company on the London Stock Exchange and admitted to the Alternative Investment Market (AIM:MTL) on 22 October 2004.

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