REG - Celsius Resources Ld - PH Government confirmation, MMCI capability

Celsius ResourcesAnnouncement

08/04/2025 07:05

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RNS Number : 0808E  Celsius Resources Limited  08 April 2025

 

 

ASX/AIM RELEASE

8 April 2025

PH Govt confirms MMCI's Financial Capability, MPSA Now Permanent
HIGHLIGHTS

·    The Philippine Department of Environment and Natural Resources (DENR
has formally accepted the binding term sheet which outlines the key terms of a
bridge loan facility between Maharlika Investment Corporation (MIC) and
Makilala Mining Company, Inc. (MMCI) as sufficient proof of financial
capability.

·    This confirmation marks MMCI's full compliance with the remaining
provisional requirements of the Mineral Production Sharing Agreement (MPSA)
for the MCB Copper-Gold Project, locking the MPSA for a full 25 years,
renewable for another 25.

______________________________________________________________________________

Celsius Resources Limited ("Celsius" or "CLA") (ASX, AIM: CLA) is pleased to
announce that its Philippine affiliate, Makilala Mining Company, Inc. ("MMCI"
or the "Company"), has received formal confirmation from the Philippine
Department of Environment and Natural Resources ("DENR") that it has satisfied
the final financial compliance requirement under its Mineral Production
Sharing Agreement for the Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB"
or the "Project") 1  (#_ftn1) .

 

This follows the DENR's acceptance of the binding term sheet which outlines
the key terms of a bridge loan facility of up to USD76.4 million, executed
between MMCI and Maharlika Investment Corporation ("MIC"), a government-owned
and controlled corporation, in February 2025 2  (#_ftn2) ("Binding Term
Sheet"). The Binding Term Sheet was evaluated and endorsed by the Mines and
Geosciences Bureau ("MGB") which noted that:

·    The Binding Term Sheet provides a structured and credible financial
mechanism for MMCI's mining operations; and

·    The involvement of MIC significantly enhances MMCI's financial
standing and credibility, offering strong assurance of continued support.

 

MMCI is expected to submit all related and forthcoming financial documents to
the DENR and MGB and to update its Three-Year Development/Utilisation Work
Program accordingly, in line with the terms of the MPSA and DENR
Administrative Order No. 2010-21 3  (#_ftn3) .

 

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

 

"We are extremely pleased to have achieved this important regulatory milestone
for the MCB Project. The acceptance of the Binding Term Sheet by the DENR and
the MGB is not only a testament to MMCI's commitment to responsible and
well-funded development, but also reflects the strong support and credibility
provided by our partnership with Maharlika Investment Corporation.

 

On behalf of CLA and MMCI's management and staff, again, I would like to
extend my heartfelt gratitude to MIC for their confidence and catalytic
funding support to the Project, and to the DENR and MGB for their
professionalism and guidance throughout the compliance process.

 

 We remain committed to ensuring that the MCB project delivers lasting and
sustainable economic benefits to our host communities, particularly in
Balatoc, the Municipality of Pasil, and the Province of Kalinga, as well as
meaningful contributions to national development, all while upholding
environmental stewardship and shared prosperity.

 

Now that we have fulfilled our compliance with the conditions of the Mineral
Production Sharing Agreement, we are in a strong position to proceed with mine
development and construction. We remain steadfast on our commitment to
sustainable development by balancing resource efficiency with environmental
stewardship and social responsibility."

 

MIC and MMCI will now proceed with signing the Omnibus Loan and Security
Agreements ("Agreements") reflecting the terms of the Binding Term Sheet
signed with MIC in February 2025.

 

 

MCB COPPER-GOLD PROJECT

 

The MCB Copper-Gold Project (MCB) is 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 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 5.19 and 5.23 Disclosure

 

The information is this announcement with respect to the MRE for the MCB
Project was first announced by the Company to ASX on 12 December 2022. The
Company confirms that it is not aware of any new information or data that
materially affects the information included in the announcement dated
12 December 2022 and that all material assumptions and technical parameters
underpinning the MRE continue to apply and have not materially changed.

 

The information in this announcement with respect to the outcomes of the
Scoping Study for the MCB Project were first released by the Company to ASX on
1 December 2021. The Company confirms that all material assumptions
underpinning the production target and forecast financial information derived
from the production target referred to in the announcement of 1 December 2021
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
 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

 Zeus Capital Limited

 (Broker)

 Harry Ansell/James Joyce/James Bavister                             P: +44 (0) 20 3 829 5000

 

 

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) ASX announcements 14 November 2024 and 18 March 2024

 2  (#_ftnref2) ASX announcement 24 February 2025

 3  (#_ftnref3) https://www.pntr.gov.ph/wp-content/uploads/2021/04/AO-2110.pdf
(https://www.pntr.gov.ph/wp-content/uploads/2021/04/AO-2110.pdf)

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

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