Celsius Resources is pleased to announce that its Philippine affiliate, Makilala Mining Company, Inc., has signed a binding term sheet with Maharlika Investment Corporation which outlines the key terms of a bridge loan facility of up to USD 76.4 million, to fund the Company’s flagship MCB Project.
The Facility is intended to fully finance the updating of the Company’s feasibility study (“FS”) and Front-End Engineering Design (“FEED”), and partially funding early development activities, including main access road construction in coordination with the Kalinga Provincial Government and skills-based training for the Balatoc community. The binding term sheet is also intended to enable MMCI to comply with the financial capability requirements under its Mineral Production Sharing Agreement with the Philippine Government.
MIC is a Philippine Government owned and controlled corporation mandated to manage the sovereign wealth fund of the Philippines. Its mission includes driving long-term national development by fostering job creation, accelerating poverty reduction, and promoting economic growth while achieving optimal investment returns.
The MIC Board’s approval follows an extensive due diligence process, which assessed technical, legal, financial, and socio-economic aspects of the Project. Initial results highlight promising technical and economic feasibility, environmental compliance, and social license.
The proceeds of the Facility mark a critical milestone in the Project’s funding, enabling immediate commencement of work with the initial funding amount of USD10 Million. Consequently, these works will no longer require direct funding from CLA.
Discussions on the additional equity funding required are ongoing, given total estimated capital expenditure of the Project. We look forward to updating investors once binding equity agreements have been finalised.
MIC’s Chief Executive Officer, Rafael D. Consing, Jr. said:
“Our investment decision reflects a shared commitment to the sustainable, inclusive, and regenerative development of the MCB Project. We envision the MCB Project as a benchmark for the Philippine Government's call for ‘beyond responsible mining,’ setting a new standard for resource development in the Philippines.”
Celsius Executive Chairman Atty. Julito R. Sarmiento, said:
“The Maharlika Investment Corporation’s decision to invest in the MCB Project underscores the Philippine Government’s strong commitment to advancing the critical metals sector and fostering a responsible mining industry that delivers meaningful benefits to host communities. In this case, we are particularly grateful for the support extended to the Balatoc Indigenous Cultural Community, which stands to gain from this partnership.
In return, we pledge to fulfill our role as responsible stewards, ensuring the MCB Project's success while upholding environmental and social responsibilities. Immense credit goes to the dedicated MMCI team in the Philippines, whose efforts, alongside the unwavering support of the CLA Board, have brought the MCB Project to this pivotal stage of construction and development. Achieving full permitting and securing substantial funding within just four years despite the challenges of the pandemic is a testament to their hard work and commitment, and we express our heartfelt gratitude to them for their achievements.”
