Published: March 20, 2024 |

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Celsius Resources said its Philippine subsidiary, Makilala Mining Company (MMCI), has obtained a mineral production sharing agreement (MPSA) with the Philippine Government for its flagship Maalinao-Caigutan-Biyog Mining Project (MCB).

The MCB Mining Project is located in the Cordillera Administrative Region in the Philippines, approximately 320km north of Manila. It is the flagship project within the Makilala portfolio which also contains other key prospects in the pipeline for permit renewal/extension.

The issuance of the MPSA, which is the first copper project to be approved in the Philippines in the last fifteen years, grants MMCI the exclusive right to undertake rational exploration, development, and commercial production of copper and associated minerals within the contract area covering approximately 2,500 hectares for a period of 25 years and is renewable for another 25 years.

“The issuance of the mining permit has been much awaited by Celsius and the Balatoc community. Now is our chance to deliver on our firm commitment to work with the government and the local communities to develop the MCB Project in a sustainable manner that creates value not only for our shareholders but also for our communities,” said Celsius Executive Chairman Atty. Julito Sarmiento.

“We are grateful to the Philippine Government and are seriously taking the government’s call for the project to go beyond compliance by striking a balance between keeping the business viable, protecting and rehabilitating the environment, uplifting local communities, and supporting the government’s socio-economic agenda. With strong government support, we are confident that we can make this happen,” added Sarmiento.

“The grant of the MCB mining permit marks the progression of Celsius from being known as an exploration company to a mineral resource developer, and eventually a mine operator. Credit goes out to our hard working in-country team who strived to get the project up to this stage in such a short time frame amidst all the challenges,” said Celsius Managing Director Peter Hume.

“Over the last eighteen months, the company has been interfacing with potential investors who have shown resounding interest in the MCB Project but have been also waiting for the issuance of the mining permit. With this now in hand, the company will proceed with finalizing funding options for the project,” added Hume.

Pursuant to the provisions of the Mining Act and its implementing rules and regulations, the primary purpose of the agreement is to provide for the sustainable development and commercial utilization of associated mineral deposits existing within the contract area, with all necessary services, technology, and financing to be furnished or arranged by MMCI in accordance with the provisions of the agreement.

During the term of the agreement, the total value of production and sale of minerals derived from the mining operations shall be accounted for and divided between the government and MMCI in accordance with fiscal regime provisions.

The sgreement shall have an initial term of six (6) months from the date of grant. During this initial term, MMCI is required to submit the following:

• Additional proof of financial capability to undertake the implementation of the pertinent work programs
• Certification precondition issued by the National Commission on Indigenous Peoples.

Subject to compliance with the above requirements, the agreement will have a term of twenty-five (25) years from the date of grant and may be renewed thereafter for another term not exceeding twenty-five (25) years.

Celsius and MMCI are progressing with the satisfaction of the above conditions by re-engaging with potential investors both in the Philippines and internationally who have shown strong interest in supporting and funding the development of the project but have been waiting for the mining permit to be issued.

Celsius Resources is an exploration and development company with a portfolio of world-class copper-gold assets in the Philippines, together with an advanced cobalt asset in Namibia. The company’s flagship project, Maalinao-Caigutan-Biyog is situated on the country’s main island of Luzon, just 320 km north of Manilla, with good access to key transport and export infrastructure.

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