Equinaire Issues Foreclosure Notices Over Celsius’s 40% MMCI Interest
Celsius Resources disputes foreclosure notices from Equinaire over its 40% interest in Makilala Mining, rejecting claims of default and vowing legal defence.
- Equinaire claims Event of Default under OLSA
- Foreclosure and public auction notices issued for Celsius’s MMCI stake
- Celsius denies default and challenges Equinaire’s enforcement rights
- OLSA rights assigned from Philippine sovereign fund to Kiri subsidiary
- Dispute centers on control and off-take arrangements at Makilala Mining
Equinaire Moves to Foreclose on Celsius’s Makilala Interest
Equinaire Holdings Limited, a subsidiary of India’s Kiri Industries, has escalated its dispute with Celsius Resources Limited (ASX:CLA) by issuing foreclosure and public auction notices against Celsius’s 40% stake in Makilala Mining Company Inc. (MMCI). This follows Equinaire’s claim that Celsius triggered an Event of Default under the Omnibus Loan and Security Agreement (OLSA) originally held by the Philippine sovereign wealth fund Maharlika Investment Corporation (MIC).
The notices, issued on 17 July 2026, assert that a prior Notice of Relinquishment by Celsius to Sodor, Inc. constituted a default, thereby justifying Equinaire’s initiation of foreclosure proceedings and a public auction of Celsius’s MMCI interest.
Celsius Rejects Default Claims and Vows Legal Defence
Celsius flatly denies the occurrence of any Event of Default and contests Equinaire’s authority to enforce security over its MMCI stake. The company has committed to vigorously defending its interests through all available legal channels, signalling a protracted legal battle ahead.
This confrontation is the latest chapter in a complex ownership and governance dispute involving MMCI, where off-take rights and project control remain contested. Celsius’s position reflects ongoing tensions following Equinaire’s acquisition of the OLSA rights from MIC in June 2026, a transaction Kiri Industries described as a strategic move to secure preferential copper ore supply for its planned Indo Asia Copper Limited facility.
Strategic Stakes and Off-take Rights at the Core
The OLSA assignment to Equinaire was framed by Kiri as a precursor to securing off-take arrangements critical for its upcoming copper processing operations. This underlying commercial rationale adds a layer of complexity to the dispute, as control over MMCI’s copper ore production directly impacts supply agreements and project financing.
Celsius’s rejection of the default claim and Equinaire’s enforcement actions underscore the fragile status of MMCI’s ownership structure, with significant implications for project development timelines and investor confidence.
Bottom Line?
The unfolding legal tussle over MMCI’s ownership highlights significant uncertainty around Celsius’s asset control and the potential impact on its copper project ambitions.
Questions in the middle?
- Will Celsius successfully block Equinaire’s foreclosure attempt through legal channels?
- How might this dispute affect MMCI’s operational and financing prospects in the near term?
- Could the conflict reshape broader off-take and supply agreements in the Philippine copper sector?
