Celsius Raises A$3.3M and Locks USD 76.4M Funding for Philippine Copper-Gold Project
Celsius Resources has locked in a USD 76.4 million bridge loan from the Philippine sovereign wealth fund to advance early development of its flagship MCB copper-gold project, while raising A$3.3 million through a share placement to bolster its balance sheet.
- USD 76.4 million bridge loan secured from Maharlika Investment Corporation
- Funding to update feasibility study and commence early works at MCB Project
- A$3.3 million raised via share placement with institutional and director participation
- Environmental approvals progressing for Sagay Copper-Gold Project
- Ongoing discussions for potential disposal of Opuwo Cobalt Project in Namibia
Bridge Loan Unlocks Early Development at MCB Project
Celsius Resources Limited has taken a significant step forward in advancing its Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in the Philippines by securing a binding term sheet for a USD 76.4 million bridge loan facility. The funding comes from Maharlika Investment Corporation, the Philippines’ sovereign wealth fund, and will finance critical early works including updating the feasibility study and Front-End Engineering Design (FEED), as well as infrastructure development such as the main access road in partnership with the Kalinga Provincial Government.
This bridge loan not only provides the capital to initiate these foundational activities but also satisfies the financial capability requirements under the Mineral Production Sharing Agreement (MPSA), which was formally confirmed by the Philippine Department of Environment and Natural Resources after quarter end. This confirmation locks in the MPSA for an initial 25 years, with the option to renew for another 25 years, securing the project's long-term operational framework.
Capital Raising Strengthens Financial Position
Alongside the bridge loan, Celsius successfully raised A$3.3 million through a strongly supported share placement involving new and existing shareholders, institutional investors, and key directors. The placement was priced at A$0.008 per share and included free-attaching options, subject to shareholder approval. Notably, substantial shareholder Silvercorp Metals, Inc., and directors Mark van Kerkwijk and Paul Dudley participated, signaling confidence from both institutional and management ranks.
At quarter end, Celsius held A$1.657 million in cash reserves, supplemented by an unused A$10 million committed equity facility with Patras Group, providing a robust funding runway estimated to cover nearly nine quarters of operations at current expenditure levels.
Progress on Other Projects and Strategic Asset Management
Beyond the MCB Project, Celsius continues to advance its Sagay Copper-Gold Project in the Negros Islands, with ongoing efforts to secure environmental and technical approvals, including finalising the Environmental Impact Statement Report in coordination with the Philippine environmental authorities. Meanwhile, the Botilao Copper-Gold Prospect remains active with exploration and community engagement programs underway as the company prepares for permit renewal.
In Namibia, Celsius is exploring strategic options for its 95% interest in the Opuwo Cobalt Project. The company has agreed to terms on a non-binding disposal agreement with Stewardship Investments (Pty) Ltd, though no binding deal has yet been reached. This potential divestment could allow Celsius to focus capital and management attention on its core Philippine assets.
Corporate Governance and Leadership Updates
The quarter also saw the appointment of Neil Glen Grimes as a Non-Executive Director, bringing a wealth of experience from his roles in mining and resource companies. This addition to the board aligns with Celsius’s strategic growth ambitions and governance strengthening as it transitions from exploration to development phases.
Overall, Celsius Resources is positioning itself for a pivotal year, leveraging sovereign-backed financing, shareholder support, and disciplined project advancement to unlock value in its copper-gold portfolio.
Bottom Line?
With sovereign-backed funding secured and key approvals progressing, Celsius is poised to transform its MCB project from concept to construction, but the market will watch closely for execution milestones and the outcome of its strategic asset review.
Questions in the middle?
- Will Celsius finalize a binding agreement for the Opuwo Cobalt Project disposal, and on what terms?
- How will the updated feasibility study and FEED impact the MCB Project’s economics and timeline?
- What are the prospects and timing for shareholder approval of the remaining placement tranche and options issuance?
