LISTED miner Benguet Corp. has secured an agreement with the buyer of its Kingking copper-gold prospect in Compostella Valley, Mindanao which would accelerate the payment for the asset originally scheduled over a seven-year period.

Proceeds from the sale would allow Benguet to fast-track the planned expansion of its gold operations and give it financial muscle to look at new mining acquisitions, chief financial officer Renato Claravall said in a separate interview on Thursday.

Benguet disclosed to the Philippine Stock Exchange that it has sealed an agreement with buyer St. Augustine Mining Ltd., an affiliate of US-based Russell Mining and Minerals Inc., to amend the terms of the sale originally signed in July last year.

The deal involved the sale price of $25 million, of which an initial $8 million was paid, while the balance will be stretched over a seven-year period. Benguet said the new deal involves a discounted payment of the balance for the remaining $17 million.

Claravall declined to give details of the deal, but noted that Benguet expects to receive the remainder of the payment “in the next 15 days.”

“We decided to ultimately shave that period through a discount because we felt there are a lot more opportunities available with the cash today,” the company official said in a phone interview.

Claravall said proceeds could be utilized for increasing gold production in Itogon, Benguet through its Acupan Contract Mining Project.

“We want to fast-track that to 500 tons per day,” Claravall said. Production at Acupan already averaged 115 tons of ore per day (tpd) in the three months to June. The company earlier disclosed that this will be increased to 150 tpd this year, and to 300 tpd by the end of 2012.

Claravall said the proceeds would also allow Benguet to take advantage of acquisitions. “We are looking at several gold projects,” he said, adding that targets are undeveloped mines mainly located “in the north.”

Benguet is also interested in expanding its nickel operations through the Sta. Cruz nickel project in Zambales operated by subsidiary Benguetcorp Nickel Mines Inc. Last week, Benguet chief executive officer Benjamin Philip Romualdez said the company is keen on putting up a nickel processing plant with potential partners from China.

The project will be funded by proceeds of the planned initial public offering to be held either in the Philippines or Hong Kong, Romualdez said. Benguet will decide on the appropriate technology for the processing plant next year, he added.

Benguet Corp. earlier reported that net income in the six months to June hit P580.11 million reversing an P88.3 million net loss in the same period last year. Earnings included a one-time gain of P549 million from the settlement of debt.  

Benguet Corp. A shares, which are only open to Filipinos, added 0.18 percent to P27.85 each while its B shares, which carry no ownership restrictions, closed flat at P27.70 each on Thursday.