Celsius reports US$15M Opuwo deal, arbitration dispute over MMCI persists

New Chair Brings Deep Philippine Mining Expertise

Celsius Resources (ASX:CLA) has strengthened its leadership with the appointment of George Bujtor as Non-Executive Chair. Bujtor’s five decades in mining include senior roles at Rio Tinto and leadership of Philippine mining companies Toledo Mining and Carmen Copper, where he oversaw multi-hundred million-dollar project financing and ramp-ups. His experience is expected to be pivotal as Celsius navigates complex arbitration and advances its flagship Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project.

Opuwo Project Sale to Chinalco Unlocks Near-Term Capital

In a major portfolio shift, Celsius agreed to sell its 95% stake in the Opuwo Cobalt-Copper Project in Namibia to Chinalco (Xiong’an) Mining Corporation Limited for US$15 million (approximately A$21.7 million). The transaction, subject to shareholder and regulatory approvals across Namibia and China, aims to free funds to accelerate development of Celsius’s Philippine copper-gold assets. Chinalco’s commitment to invest at least US$1 million in exploration and metallurgical testing during the conditions period underscores its intent to advance the project.

Arbitration Clouds Control of Makilala Mining Company

Celsius remains embroiled in a high-stakes arbitration over ownership and governance of Makilala Mining Company Inc. (MMCI), the vehicle for the MCB Project. The dispute follows the expiry of a payment deadline by local partner Sodor and affiliate PMR, who had agreed to acquire a combined 60% interest in MMCI and associated processing company PDEP. Despite the deadline passing, Sodor attempted late payment, triggering a legal standoff. Celsius rejects claims of default by Equinaire Holdings Limited (a Kiri Industries subsidiary) over a loan assignment from the Philippine sovereign wealth fund and contests foreclosure and auction notices on its 40% MMCI stake. The ongoing arbitration and boardroom upheaval, including contested shareholder meetings and appointments, pose significant operational risks to project control and development. This dispute is a continuation of tensions documented in Celsius’s previous filings and legal actions Equinaire’s Foreclosure Move.

Sagay Project Leadership Bolstered Amid Regulatory Progress

Celsius renewed its focus on the Sagay Copper Project in the Philippines by appointing Attilenore “Nene” Manero as Interim Chair and President of its subsidiary Tambuli Mining Company, with plans to appoint former Celsius director Peter Hume as Technical Advisor. These moves follow recent governance changes at MMCI and aim to retain critical in-country expertise. The project, featuring a large-scale copper-gold porphyry deposit with an existing Mineral Resource Estimate of 312 million tonnes at 0.39% copper and 0.11 g/t gold, is progressing through feasibility and environmental approvals. Phase 1 targets development of a shallow supergene copper deposit with an environmentally considerate mining approach, while Phase 2 envisions a deep underground block cave operation.

MCB Project Development Advances Despite Legal Uncertainty

Operationally, Celsius continued to push forward on mine planning, contractor engagement, infrastructure surveys, and environmental monitoring at the MCB Project. Efforts include refining underground mine sequencing to access higher-grade zones earlier, surveying the main access road, and evaluating sustainable power supply options. Community engagement remains a priority, with skills training programs yielding 118 certified graduates and ongoing support for education, cultural heritage studies, and infrastructure improvements such as potable water reservoirs. Environmental compliance activities and water resource assessments continue to support project permitting.

Financial Position and Capital Structure Updates

At quarter-end, Celsius held A$7.2 million in cash, excluding funds held by MMCI following the contested board appointments. The company spent approximately A$141,000 on exploration activities during the quarter, primarily on the MCB and Sagay projects. Notably, Celsius is proposing to cancel a previously approved 20-for-1 share consolidation, responding to shareholder feedback and recent developments, with a vote on revocation expected in early September.