CORRECTED-UPDATE 1-Peruvian miner Hochschild to issue $350 mln in bonds
(In Nov. 28 item, in 5th paragraph corrects time period to at least five years, from less than five years.)
By Marco Aquino
PARACAS, Peru Nov 28 (Reuters) - Peruvian miner Hochschild plans a $350 million bond issue to fund its expansion in Peru as well as a project in Chile, company CEO Ignacio Bustamante said on Thursday.
Hochschild - which produces gold and silver in Peru, Argentina and Mexico - hopes to increase its silver output by 50 percent from the current 20 million ounces a year.
"We are beginning to work on a bond issue, for about $350 million," Bustamante said at a business conference in the southern city of Paracas. He gave no date for the issue.
Hochschild plans to invest $372 million in its Inmaculada silver mine project in Peru, which is under construction and is due to come on stream in 2015 producing between 11 and 12 million ounces a year, he said.
The company plans to invest $1 billion in its Volcan gold project in Chile, which will take at least five years to come on stream, Bustamante said.
A company spokesman in London said Volcan is a five to 10-year project.
Hochschild has 34 exploration projects underway despite moves to reduce costs due to the fall in precious metal prices that cut its profits in the first half of 2013.
"We have taken steps to optimize cash flow and significantly cut production and administrative costs," he said. (Editing by Anthony Boadle, Gunna Dickson and Marguerita Choy)