REG - Celsius Resources Ld - MCB Project granted extension to meet funding

Celsius ResourcesAnnouncement

14/11/2024 07:30

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RNS Number : 2426M  Celsius Resources Limited  14 November 2024

 

ASX/AIM RELEASE

14 November 2024

MCB Project Granted Extension to Meet Funding Condition with Maharlika Investment Corporation
HIGHLIGHTS

· The Philippine Department of Environment and Natural Resources/Mines and
Geosciences Bureau has granted Makilala Mining Company, Inc. and its potential
investor Maharlika Investment Corporation's request for extension to comply
with the additional proof of financial capability as the remaining MPSA
requirement.

_______________________________________________________________________________

Celsius Resources Limited ("CLA" or "Celsius") (ASX, AIM: CLA) is pleased to
announce that its Philippine affiliate, Makilala Mining Company, Inc. ("MMCI"
or the "Company"), has been granted an additional six-month extension to
submit further proof of financial capability for its flagship
Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB" or the "Project").

The Philippine Department of Environment and Natural Resources ("DENR") and
the Mines and Geosciences Bureau ("MGB") recognised that MMCI had fulfilled
the requirements of the National Commission on Indigenous Peoples'
Certification Precondition, which is one of the two conditions to its Mineral
Production Sharing Agreement ("MPSA") or Mining Permit 1  (#_ftn1) . In July
and August 2024, MMCI and its potential investor, Maharlika Investment
Corporation 2  (#_ftn2) ("MIC"), submitted letters to the DENR/MGB requesting
an extension to comply with the other MPSA requirement to show additional
proof of financial capability.

While MIC and MMCI have been working closely and diligently to complete the
due diligence and documentation needed for MIC's investment in MMCI, MIC, as a
government-owned and controlled corporation, must adhere to extensive legal
procedures to secure the necessary regulatory approvals for the investment
agreements.

The details of the proposed investment agreement will remain confidential and
will be disclosed to shareholders once the drafted contracts are finalised and
become binding.

In response to MMCI and MIC's request, a one-time six-month extension, valid
until March 13, 2025, was granted, subject to a third-party assessment
commissioned by MIC, being submitted to the DENR/MGB on or before March 13,
2025, once the investment agreements are executed and become binding.

Celsius Executive Chairman Atty. Julito R. Sarmiento, said:

 

"Since the issuance of the mining permit for the Maalinao-Caigutan-Biyog (MCB)
Project, MMCI has sparked strong interest from investors in the Philippines
and abroad, underscoring the significant economic potential of the project. We
are advancing discussions with MIC, whose potential investment as the
Philippines' sovereign fund, could be transformational for MMCI and the
Philippine mining industry. As MIC navigates the extensive regulatory
requirements and process, we have been granted a one-time, six-month extension
to complete the necessary documentation to show additional proof of financial
capability. The respective Boards and Management teams of Celsius and MMCI are
working closely with MIC and relevant parties to complete the necessary due
diligence and finalise the investment agreements that will deliver the best
value for our shareholders and stakeholders. We look forward to updating you
as we progress towards securing a strong partnership that supports our vision
for long-term success."

 

 MCB COPPER-GOLD PROJECT

 

The MCB Copper-Gold Project (MCB) 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.

 

A maiden JORC Compliant Mineral Resource Estimate was declared for the MCB
Project in January 2021, comprising 313.8 million tonnes @ 0.48% copper and
0.15g/t gold, for 1.5 million tonnes of contained copper and 1.47 million
ounces of gold, of which 290.3 million tonnes @ 0.48% copper and 0.15 g/t gold
is classified as Indicated and 23.5 million tonnes @ 0.48% copper and 0.10 g/t
gold is classified as Inferred.

 

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 CLA 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.
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  (#_ftn3) 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.

 

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 5.23 Disclosure

 

The Company confirms that it is not aware of any new information or data that
relates to Exploration Results and Mineral Resources at the MCB Project and
that all material assumptions and technical parameters underpinning the
Mineral Resource continue to apply.

 

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 8 9324 4516

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

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

 

 Celsius Resources Limited
 Mark van Kerkwijk                                                   P: +61 8 9324 4516

                                                                     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)

 Beaumont Cornish Limited

 (Nominated Adviser)

 Roland Cornish/Felicity Geidt/Andrew Price                          P: +44 (0) 207 628 3396

 WH Ireland (Broker)

 Harry Ansell/James Joyce/Isaac Hooper                               P: +44 (0) 20 7220 1666

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by FCA. Beaumont Cornish'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. Beaumont Cornish is not acting for and
will not be responsible to any persons for providing protections afforded to
customers of Beaumont Cornish nor for advising them in relation to the
proposed arrangements described in this announcement or any matter referred to
in it.

(( 1  (#_ftnref1) )) Refer to CLA Announcement dated 18 March and 4 September
2024

(( 2  (#_ftnref2) )) Maharlika Investment Corporation is a Philippine
Government-Owned and -Controlled Corporation mandated to manage and generate
optimal returns on investments to catalyse the country's economic growth and
social development: https://maharlika.dof.gov.ph/
(https://maharlika.dof.gov.ph/)

 3  (#_ftnref3) C1 costs include all direct costs in mining, processing,
general and administration, and selling (including freight).

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