REG - Celsius Resources Ld - MCB Project activities and funding update

Celsius ResourcesAnnouncement

07/08/2025 10:15

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RNS Number : 4171U  Celsius Resources Limited  07 August 2025

 

ASX/AIM RELEASE

7 AUGUST 2025

 

MCB Copper-Gold Project activities and funding update
HIGHLIGHTS

·   MCB Project Feasibility Update continues on track.

·   FEED program approaching half-way-point.

·   Project financing discussions continue with several interested parties.

_______________________________________________________________________________

Celsius Resources Limited ("Celsius" or the "Company") and its Philippines
affiliate project company Makilala Mining Company Inc. ("MMCI") is pleased to
announce that progress towards the updated Feasibility Study and Front-End
Engineering & Design ("FEED") continues on schedule. Supported by
continued funding from Maharlika Investment Corporation ("MIC"), The
Philippines Sovereign Wealth Fund, MMCI and the Feasibility Study managers
Ausenco of Brisbane, Australia, are on track to reach the engineering half-way
point and submit an interim study report to MIC by the end of August 2025 1 .

The Feasibility Study update is being informed by the current on ground study
work at the Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB Project" or the
"Project") (Barangay Balatoc, Municipality of Pasil, Kalinga Province) testing
capital cost assumptions, construction designs and schedules. The Feasibility
Study is also applying current and future commodity price assumptions for Gold
and Copper and foreign exchange rates.

Celsius and MMCI have been in active discussions with a number of parties with
regard to project financing for the MCB Project. MIC have provided initial
financing from the first omnibus loan and security agreement ("First OLSA"),
terms and conditions of which can be found in the announcement on 24 February
2025, of the bridge loan facility 2  and have expressed interest in an equity
investment in the MCB Project. Subject to the completion of the interim FEED
report, MMCI and MIC may enter into detailed investment discussions, however
there is no certainty such discussions will be successful or that any
discussions will result in an investment in the MCB Project.

Several other parties have also expressed interest to invest in the MCB
Project. Meetings have been hosted by the Company's Project team with these
various parties, focusing on the Project's technical and financial aspects.

One of these parties, Kiri Industries Limited of Ahmedabad, India ("Kiri"),
has signed and presented today a memorandum of undertaking ("MOU") at the
India-Philippine Business Forum in Bangalore, India, attended by the President
of the Philippines, Ferdinand Marcos, Jr. who is on a state visit to India
upon the invitation of the Prime Minister of India, Narendra Mohdi. This
high-level and non-binding MOU contains no specific or definitive commercial
terms of investment at this stage and outlines the basis upon which the
parties intend to negotiate in good faith to reach agreement for a potential
investment by Kiri in MMCI.

With regard to other interested parties, there have been discussions about
both debt and equity, or combined debt and equity financing structures,
including possible concentrates off-take and advance funding options.
Discussions with all parties are intended to continue as the Kiri MOU is
non-exclusive and non-binding at this stage.

The Company reiterates that no binding agreement has been reached in relation
to the potential investment by Kiri in MMCI or by any of the other interested
funding parties. The Company cautions investors that an investment decision
should not be made on the basis of any potential transaction. There can be no
certainty that any binding agreement will be reached or the timing of any such
agreement.

As per the terms of the First OLSA between MMCI and MIC, a second drawdown of
funds has been transferred to continue the Feasibility Study update and FEED
programs.  An amount of USD 2 million is due to be transferred to MMCI this
week. Total drawdowns from the MIC bridge loan facility to date amounts to USD
4 million, with USD 6 million remaining undrawn from the First OLSA as of 7
August 2025.

Throughout these discussions, the ongoing Feasibility Study and FEED programs,
The Company's focus has been on securing the necessary funding for the
construction of the MCB Project. The Company continues to build strong
foundations with the aim of creating long-term success and to ensure the
Project is not only technically sound and financially robust, but also
developed with clear regard for environmental responsibility, social alignment
and sound governance. The overall program is intended to provide shareholders
and the market with confidence on the Project and Company value.  Celsius and
MMCI remain firmly committed to commencing copper-gold concentrate production
from the MCB Project before the end of 2027.

The Directors of Celsius remain committed to securing the best possible
financing solution for the MCB Project and the best possible value for Celsius
shareholders. The Company continues to deliver on its commitments to the
Philippines Government and its highly supportive Balatoc community, with whom
the Company are confidently advancing the MCB Project.

 

 

MCB COPPER-GOLD PROJECT

 

The MCB Copper-Gold Project is located in the Cordillera Administrative Region
in the Philippines, approximately 320km north of Manila (Figure 1). It is the
flagship project within the Makilala portfolio which also contains other key
prospects in the pipeline for permit renewal/extension.

 

An updated JORC compliant Mineral Resource Estimate was announced for the MCB
Project on 12 December 2022, comprising 338 million tonnes @ 0.47% copper and
0.12 g/t gold, for a total of 1.6 million tonnes of contained copper and 1.3
million ounces of gold, of which 249 million tonnes @ 0.44% copper and 0.11
g/t gold is classified as Indicated, 42 million tonnes @ 0.52% copper and 0.11
g/t gold is classified as Inferred, and 47 million tonnes @ 0.59% copper and
0.19 g/t gold is classified as Measured.

 

A Study for the MCB Project was announced by Celsius on 1 December 2021, which
identified the potential for the development of a copper-gold operation with a
25-year mine life. The Study was based on an underground mining operation and
processing facility to produce a saleable copper-gold concentrate.

 

Highlights from the Study include a Post tax NPV (8%) of US$464m and IRR of
31%, assuming a copper price of US$4.00/lb and gold price of US$1,695/oz,
which are both currently significantly below currently prevailing market
prices. Initial capital expenditure is estimated to be US$253m with a payback
period of approximately 2.7 years. The designed mine production is matched to
a 2.28Mtpa processing plant which will treat ore with an estimated average
grade of 1.14% copper and 0.54g/t gold for the first 10 years of planned
production with a C1 3  cash costs at just US$0.73/lb copper, net of gold
credits.

 

Figure 1. Location of the MCB Project in the province of Kalinga, Northern
Luzon, Philippines.

 

ABOUT Kiri Industries Limited

Kiri Industries Limited ("KIL" or "Kiri") is a fully integrated Dyes and
Chemicals company and is a winner of several CHEMEXCIL and GDMA performance
awards. Kiri is a preferred resource centre for many of the most extensive
product lines in textile dyes. Sophisticated quality control practices and
procedures, modern manufacturing facilities and erp driven enterprise
management has enabled KIL to offer Internationally recognised quality
products and services. KIL is an accredited and certified Key Business Partner
with world's top Dyestuff majors across Asia-Pacific, the EU and Americas.

The company came into being in 1998 with the setting up of Dyes manufacturing
unit at Vatva, Ahmedabad. KIL is an ISO 9001:2008-certified company listed
on Bombay Stock Exchange and National Stock Exchange of India. In 2007, KIL
embarked upon two stage backward integration by setting up India's largest
Dyestuff intermediate manufacturing facility and largest basic chemicals
facility at Padra (Baroda, Gujarat). To strengthen its competitive edge in the
Dyes vertical, KIL formed Joint Venture with Long Sheng (China) and set up
manufacturing facility for Dyes at Padra ( Baroda, Gujarat ).

In 2010, Kiri acquired DyStar Group, and is considered to be a historical
development in the global Dyes industry.  DyStar Group was the global market
leader in Dyes, Dye solutions, Performance Chemicals, new technologies and
custom-manufacture of special Dyes & Pigments. It provides products and
services across the whole value chain in numerous industrial sectors (apparel,
hosiery, automotive, carpets, leather, home upholstery, industrial fabrics,
etc.) The acquisition of Dystar, a multinational German Company having
worldwide market share of around 21% has changed the dynamics, making Kiri a
Global Conglomerate and a total textile solution provider.

In the 15 years of its corporate journey, Kiri is focusing on providing
products of high quality, collaborations and strategic acquisitions,
application & environment aligned R&D, innovative solution-centric and
all-encompassing customer care. Kiri is accredited with many revolutionary
innovations in the process and chemistry of producing dyes and dyes
intermediates. These have enabled it to contribute towards cost
rationalisations for customers, and improved compliance with sustainability
norms.

All initiatives taken by Kiri have enabled it to set its footprint in over 50
countries across 7 continents.

Kiri also owns Indo Asia Copper Limited, a pioneering leader in the copper
industry, dedicated to excellence in the processing and manufacturing
high-quality copper products. Indo Asia Copper is a 100% subsidiary of Kiri.
Indo Asia Copper has been established with an agenda to meet the growing
demand for copper in various sectors.  Indo Asia Copper is committed to
delivering superior products and services while upholding the highest
environmental sustainability and corporate responsibility standards.
Sophisticated quality control practices and procedures, modern manufacturing
facilities, and ERP-driven enterprise management have empowered IAL to deliver
internationally recognised products and services.

https://www.indoasiacopper.com/ (https://www.indoasiacopper.com/)

https://kiriindustries.com (https://kiriindustries.com)

 

 

This announcement has been authorised by the Board of Directors of Celsius
Resources Limited.

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.

 

Listing Rule Disclosures

 

The Company confirms that all material assumptions underpinning the production
targets and forecast financial information derived from production targets in
the Company's ASX announcement dated 1 December 2021 titled "Positive Scoping
Study completed on MCB Copper-Gold Project confirms significant potential"
continue to apply and have not materially changed.

 

The Mineral Resource estimate for the MCB Project was disclosed in the
Company's ASX Announcement dated 12 December 2022 titled "Updated Mineral
Resource for Celsius' MCB Copper-Gold Project". The Company confirms that it
is not aware of any new information or data that materially affects the
information included in the previous announcement and that all material
assumptions and technical parameters underpinning the Mineral Resource
estimate continue to apply and have not materially changed.

 

Forward Looking Statements

 

Some of the statements appearing in this announcement may be in the nature of
forward-looking statements. You should be aware that such statements are only
predictions and are subject to inherent risks and uncertainties. Those risks
and uncertainties include factors and risks specific to the industries in
which the Company operates and proposes to operate as well as general economic
conditions, prevailing exchange rates and interest rates and conditions in the
financial markets, among other things. Actual events or results may differ
materially from the events or results expressed or implied in any
forward-looking statement.

 

No forward-looking statement is a guarantee or representation as to future
performance or any other future matters, which will be influenced by a number
of factors and subject to various uncertainties and contingencies, many of
which will be outside the Company's control.

 

The Company does not undertake any obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or
circumstances after today's date or to reflect the occurrence of unanticipated
events. No representation or warranty, express or implied, is made as to the
fairness, accuracy, completeness or correctness of the information, opinions
or conclusions contained in this announcement. To the maximum extent permitted
by law, none of the Company's Directors, employees, advisors, or agents, nor
any other person, accepts any liability for any loss arising from the use of
the information contained in this announcement. You are cautioned not to place
undue reliance on any forward-looking statement. The forward-looking
statements in this announcement reflect views held only as at the date of this
announcement.

 

Celsius Resources Contact Information

Level 5, 191 St. Georges Terrace

Perth WA 6000

 

PO Box 7059

Cloisters Square PO

Perth WA 6850

 

P: +61 2 8072 1400

E: info@celsiusresources.com.au (mailto:info@celsiusresources.com.au)

W: www.celsiusresources.com (http://www.celsiusresources.com)

 

 Celsius Resources Limited
 Neil Grimes                                                         P: +61 419 922 478

                                                                     E: info@celsiusresources.com.au (mailto:info@celsiusresources.com.au)

                                                                     W: www.celsiusresources.com (http://www.celsiusresources.com)
 Multiplier Media

 (Australia Media Contact)                                           M: +61 402 075 707

 Jon Cuthbert                                                        E: jon.cuthbert@multiplier.com.au (mailto:jon.cuthbert@multiplier.com.au)

 Zeus

 (Nominated Adviser and Broker)                                      P: +44 (0) 20 3 829 5000

 Harry Ansell / James Joyce / James Bavister

 

Zeus Capital Limited ("Zeus") is the Company's Nominated Adviser and is
authorised and regulated by FCA. Zeus's responsibilities as the Company's
Nominated Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM Rules for
Nominated Advisers, are owed solely to the London Stock Exchange. Zeus is not
acting for and will not be responsible to any persons for providing
protections afforded to customers of Zeus nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 1  ASX/AIM announcements 19 May 2025,18 June 2025 and 27 June 2025

 2  ASX/AIM announcements 24 February 2025 and 8 April 2025

 3  C1 costs include all direct costs in mining, processing, general and
administration, and selling (including freight).

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