REG - Celsius Resources Ld - MCB Project Operational Update

Celsius ResourcesAnnouncement

17/06/2025 07:00

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RNS Number : 0350N  Celsius Resources Limited  17 June 2025

 

ASX/AIM RELEASE

17 JUNE 2025

 

Celsius Resources Ltd & MCB Project Operational Update
HIGHLIGHTS

·    The Company is pleased to confirm that the first drawdown from the
funding arrangements previously announced with Mahalika Investment Corporation
has been received.

·    Increased Company operational factors around the technical and
financial aspects of Project Development has initiated management changes.

_______________________________________________________________________________

Celsius Resources Limited ("Celsius" or  the "Company") (ASX, AIM: CLA) is
pleased to announce the following operational update, and that its Philippine
affiliate, Makilala Mining Company, Inc. ("MMCI") has made further progress
with the Company's flagship Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB"
or the "Project").

The Company is pleased to confirm that the first drawdown under the first OLSA
loan agreement previously announced with Mahalika Investment Corporation
("MIC") has been received.  These funds will be applied to the Feasibility
Study update and FEED program at the MCB Project being undertaken by
Ausenco 1  (#_ftn1) .

This progress represents a strategic milestone for the Company, as the MCB
Project enters a new development phase with MIC as its MCB Project funding
partner. Associated with these operations is Celsius' commitment to
responsible resource and mining development at the MCB Project.

The Company continues to be confident that the Feasibility Study update and
FEED will be completed on schedule, ready for anticipated early work
construction in late 2025 followed by main construction and targeting first
production by 2027.

Given the increased operational factors around the technical and financial
aspects of these developments at the MCB Project, Neil Grimes, currently a
Non-Executive Director, has been appointed as Executive Director of the
Company with immediate effect. Neil has worked extensively in the mining
sector in the Philippines, and his experience of operations in-country,
working alongside the MCB Project team, will continue to be of significant
benefit to the Company's operations. Neil's executive role will focus on the
following areas:

·    Supporting disciplined and transparent financial management aligned
with sustainability principles to maintain the Company's strong financial
position through 2025;

·    Working closely with potential funding partners to secure the
necessary financing for the MCB Project and ensure not only the Project's
long-term economic objectives but also the environmental and social viability;

·    Managing the Company's communications with external stakeholders and
leading marketing, investor and shareholder engagement initiatives, including
progressive presentations of technical outcomes from the FEED and updated
study; and,

·    Progressing the disposal of the Company's projects in Namibia and
Australia.

As part of these changes, Mark Van Kerkwijk will move to become a
Non-Executive Director of the Company with immediate effect. The Board thanks
Mark for his efforts since joining the Board and for his role in supporting
the Company during the period it obtained the final MPSA 2  (#_ftn2) for MCB
Project and secured its loan funding with MIC 3  (#_ftn3) .

Executive Chairman, Atty. Julito R. Sarmiento commented, "The first funding
drawdown from MIC and the changes to the Board of Celsius are timely as we
transition from explorer to developer and progress toward becoming the newest
Copper and Gold Producer in the Philippines. We are not merely developing a
mine; we are advancing a Project grounded in environmental stewardship,
meaningful stakeholder partnership, and long-term climate resilience.
Increasing our focus on the MCB Project will help us deliver long-term value
for shareholders, while advancing a sustainable development approach that
supports both the community and the environment. We will announce further
progress at the appropriate time in due course."

In accordance with ASX Listing Rule 3.16.4, a summary of the material terms
and conditions of Mr. Grimes' employment arrangements is included as an
annexure to this announcement.

 

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.

 

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,
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 4  (#_ftn4) 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 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 Capital Limited

 (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.

 

Summary of Material Terms

 

 

In accordance with ASX LR 3.16.4, the Board advises that the material terms of
Mr. Grimes' employment agreement with the Company are as follows:

 

 

Commencement date: Appointment as Executive Director effective 16 June 2025.

 

Term: No fixed term.

 

Fixed remuneration: Mr. Grimes will be paid fixed remuneration of $16,745 per
month inclusive of superannuation.

 

Termination: Three months' notice period for without cause termination by
either party, and immediate termination for cause based on defined events.

 

 1  (#_ftnref1) ASX announcement 19 May 2025

 2  (#_ftnref2) ASX announcement 8 April 2025

 3  (#_ftnref3) ASX announcement 24 February 2025

 4  (#_ftnref4) C1 costs include all direct costs in mining, processing,
general and administration, and selling (including freight).

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