Merger Values IDM International at $18.7M to Advance Mankayan Copper-Gold Project
Blackstone Minerals is set to merge with IDM International, combining expertise and local presence to advance exploration of the world-class Mankayan copper-gold porphyry project in the Philippines.
- Merger of equals between Blackstone Minerals and IDM International
- Focus on exploration and development of the Mankayan copper-gold project
- Mankayan project located near active Lepanto gold mine with significant high-grade resources
- Philippines offers a pro-mining environment with strong social license secured
- Combined entity to leverage Blackstone’s base metals experience and IDM’s local operations
Strategic Merger to Boost Southeast Asia Base Metals Ambitions
Blackstone Minerals Limited has announced a merger with IDM International Limited, creating a combined entity positioned as a premier base metals developer in Southeast Asia. This all-scrip merger of equals aims to harness Blackstone’s extensive mine development expertise alongside IDM’s established local presence and social license in the Philippines.
The merger centers on advancing exploration and development of the Mankayan copper-gold porphyry project, a world-class mineral district located in Northern Luzon, Philippines. The project lies just 2.5 kilometers along strike from the active Lepanto gold mine and the Far Southeast porphyry project, both significant operations in the region.
Mankayan: A Rare High-Grade Copper-Gold Opportunity
Mankayan stands out as one of the largest undeveloped high-grade copper-gold porphyry systems globally. The mineralized system remains open along strike and at depth, offering substantial exploration upside. Historic drilling results have demonstrated impressive intercepts, including intervals exceeding 900 meters at approximately 1% copper equivalent, underscoring the project’s scale and grade potential.
The project’s location within a well-established mining district, coupled with the Philippines’ long history of successful mining operations such as B2Gold and OceanaGold, adds to its attractiveness. Notably, the Mankayan project offers potential for a lower capital expenditure development scenario by focusing initially on its high-grade core, which could enable a more cost-effective pathway to production.
Philippines: An Emerging Mining Jurisdiction with Social License
The Philippines has recently demonstrated a renewed commitment to mining, with metal production rising by 32% in 2022 under President Ferdinand Marcos Jr’s administration. The Mines and Geosciences Bureau has identified Mankayan as a priority project, reflecting government support for sustainable mineral development.
Crucially, IDM International has secured a 25-year Mineral Production Sharing Agreement and signed a landmark Memorandum of Agreement with the local Indigenous People, marking the first mining company in the area to obtain such consent. This social license to operate is a significant milestone, positioning the merged entity to responsibly advance the project with strong community backing.
Complementary Strengths and Synergies
The merger brings together Blackstone’s technical and corporate mining expertise, particularly in base metals development across Southeast Asia, with IDM’s in-country operational experience and established relationships. Blackstone’s existing assets, such as the Ta Khoa nickel project in Vietnam, provide additional synergies through shared exploration and development infrastructure, including geophysics, drilling, and metallurgical testing capabilities.
The combined management team, led by Managing Director Scott Williamson and Non-Executive Chairman Hamish Halliday, brings decades of experience in mining engineering, exploration, and corporate leadership. This seasoned leadership is expected to drive the merged group’s strategy to unlock the full potential of Mankayan and other regional assets.
Transaction Details and Outlook
The merger is structured as an all-scrip acquisition of IDM International by Blackstone, with IDM shareholders receiving 7.4 Blackstone shares for each IDM share held. The implied equity value for IDM is approximately AUD 18.7 million. The transaction is subject to shareholder and regulatory approvals, with key milestones including court hearings and shareholder meetings scheduled through mid-2025.
Upon completion, the pro forma capital structure will see approximately 1.29 billion shares on issue, with a market capitalization near AUD 37.5 million. The merged entity will have liquidity of around AUD 2.2 million, combining cash and listed investments to support ongoing exploration and development activities.
Investors will be watching closely as the merged group advances drilling programs with assays pending, aiming to expand the resource base and refine development scenarios. The project’s proximity to operating mines and its high-grade optionality position it as a compelling opportunity in the copper-gold sector.
Bottom Line?
The Blackstone-IDM merger sets the stage for a transformative chapter in Southeast Asia’s copper-gold landscape, with exploration results and regulatory approvals poised to shape the next phase.
Questions in the middle?
- How will pending drilling assay results impact the resource estimate and development plans at Mankayan?
- What are the key regulatory hurdles and timelines for the merger’s completion and project permitting?
- How will the merged entity balance capital expenditure between high-grade core development and potential bulk mining expansion?