MCB Project Feasibility and Funding Progress with $4M Drawdown and Kiri MOU
Celsius Resources reports steady progress on the MCB Copper-Gold Project feasibility and engineering design, while engaging multiple parties in financing discussions including a new memorandum of understanding with Kiri Industries.
- Feasibility Study and FEED program on schedule
- Funding supported by Philippines Sovereign Wealth Fund
- Non-binding MOU signed with Kiri Industries Limited
- Multiple parties interested in project financing
- Target to commence production by end of 2027
Steady Progress on Feasibility and Engineering
Celsius Resources Limited and its affiliate Makilala Mining Company Inc. (MMCI) have confirmed that the updated Feasibility Study and Front-End Engineering & Design (FEED) for the MCB Copper-Gold Project in the Philippines are progressing on schedule. Supported by ongoing funding from the Philippines Sovereign Wealth Fund, Maharlika Investment Corporation (MIC), the project is approaching the halfway mark in its engineering phase, with an interim report due by the end of August 2025.
The Feasibility Study is refining capital cost assumptions, construction designs, and schedules, while incorporating current and forecast commodity prices for copper and gold, as well as foreign exchange rates. This rigorous approach aims to ensure the project’s technical and financial robustness ahead of construction.
Financing Talks Gain Momentum
Alongside technical progress, Celsius and MMCI are actively engaging with several potential financiers. The Philippines Sovereign Wealth Fund has already provided initial bridge financing and expressed interest in an equity stake. Meanwhile, a notable development is the signing of a non-binding memorandum of understanding (MOU) with Kiri Industries Limited, an Indian dyes and chemicals conglomerate with a significant footprint in copper processing through its subsidiary Indo Asia Copper Limited.
This MOU, announced at a high-profile India-Philippines Business Forum attended by the presidents of both countries, outlines intentions to negotiate a potential investment in the MCB Project. However, the agreement remains non-exclusive and non-binding, with no definitive commercial terms yet agreed.
Project Outlook and Community Commitment
The MCB Project, located in the Cordillera Administrative Region of Northern Luzon, holds a substantial mineral resource with over 1.6 million tonnes of contained copper and 1.3 million ounces of gold. Previous studies have indicated a 25-year mine life with attractive financial metrics, including a post-tax net present value of US$464 million and an internal rate of return of 31%, assuming conservative commodity prices.
Celsius remains committed to commencing copper-gold concentrate production before the end of 2027. The company emphasizes its dedication to environmental responsibility, social alignment with the local Balatoc community, and sound governance practices, aiming to build a sustainable and value-creating operation.
While financing discussions continue, Celsius cautions that no binding agreements have been finalized, and investment decisions should be made with awareness of inherent uncertainties. The next milestone will be the interim FEED report, which could catalyze more detailed investment negotiations.
Bottom Line?
As Celsius nears key engineering milestones, the evolving financing landscape will be critical to unlocking the MCB Project’s potential.
Questions in the middle?
- Will the interim FEED report lead to binding investment agreements?
- How might Kiri Industries’ involvement influence project financing and off-take arrangements?
- What are the risks if financing discussions fail to secure necessary capital on schedule?
