Celsius Resources announces $76.4M loan for Philippine Copper-Gold Project

Sydney: Celsius Resources Limited (CLA) has revealed that its Philippine affiliate, Makilala Mining Company, Inc. (MMCI), has entered into a binding term sheet with Maharlika Investment Corporation (MIC) for a bridge loan facility of up to USD 76.4 million. This loan aims to fund MMCI’s Maalinao-Caigutan-Biyog Copper-Gold Project (MCB).

The Facility will fully finance the Company’s feasibility study update and Front-End Engineering Design (FEED), while also supporting early development activities such as access road construction and skills-based training for the Balatoc community. The term sheet also helps MMCI comply with financial capability requirements under its Mineral Production Sharing Agreement with the Philippine Government.

MIC, a government-owned corporation managing the sovereign wealth fund of the Philippines, completed an extensive due diligence process, approving the loan after assessing the Project’s technical, legal, financial, and socio-economic aspects. Initial results indicate promising feasibility, environmental compliance, and social license.

The initial funding of USD 10 million enables immediate commencement of work without direct funding from CLA. Discussions for additional equity funding are ongoing.

MIC CEO Rafael D. Consing, Jr. expressed commitment to sustainable and inclusive development, stating, “Our investment decision reflects a shared commitment to the MCB Project’s sustainable development, setting a new standard for resource development in the Philippines.”

Celsius Executive Chairman Atty. Julito R. Sarmiento praised the Philippine Government’s commitment to responsible mining, highlighting the benefits to the Balatoc Indigenous Cultural Community.

Principal Terms and Conditions:

• Facility Amount: Up to USD 76.4 million
• Use of Proceeds: Finance feasibility study, FEED, development, and compliance.
• Availability Period: 9 months for the First OLSA; up to 24 months for the Second OLSA.
• Tenor: 3 years for the entire Facility.
• Interest Rate: 12.5% fixed, compounded quarterly.

The Facility’s proceeds mark a critical milestone for the Project, facilitating immediate work commencement and alleviating the need for direct funding from CLA. Celsius Resources and MMCI are finalizing the Omnibus Loan and Security Agreements and selecting an engineering company to update the FS and FEED. The MCB Copper-Gold Project is poised for significant development, with a 25-year mine life and substantial mineral resources.

Stay tuned for more updates as MMCI progresses with its flagship project in the Philippines.