Equinaire Plans Auction on Celsius’s 40% MMCI Stake Amid Ongoing Legal Dispute

Foreclosure Notices Resurface Despite Legal Challenges

Celsius Resources Limited (ASX:CLA) is once again under pressure as Equinaire Holdings Limited, a subsidiary of Kiri Industries, has issued fresh notices to recommence foreclosure proceedings and a public auction of Celsius’s 40% interest in Makilala Mining Company Inc. (MMCI). These moves follow a series of disputed default claims under the Omnibus Loan and Security Agreement (OLSA) that have been contested by Celsius since mid-2026.

The recent notices include a formal resumption of foreclosure and an announcement of a planned auction scheduled for 8 September 2026. Celsius rejects the validity of these claims, maintaining that no Event of Default has occurred and that Equinaire lacks the contractual grounds to enforce security over its MMCI stake.

Court Denies Injunction but Affirms Arbitration as Dispute Forum

In a significant judicial development, the Regional Trial Court of Makati denied Celsius’s Petition for Interim Measures of Protection intended to block any foreclosure or disposition of its MMCI shares pending arbitration. The Court ruled that Celsius had not demonstrated irreparable injury, viewing the potential loss as primarily economic and thus addressable through arbitration remedies.

Importantly, the Court clarified that its decision does not confirm any Event of Default or Equinaire’s entitlement to foreclose. The underlying contractual disputes remain unresolved and are to be decided through arbitration, where the arbitral tribunal holds authority to assess the foreclosure’s validity and grant interim relief if warranted.

Temporary Order Lifted After Equinaire Posts Counterbond

Earlier, a Temporary Order of Protection (TOP) had blocked Equinaire’s foreclosure attempts, but it was lifted following Equinaire’s payment of a PHP201 million counterbond. This development removed a key procedural hurdle for Equinaire, enabling it to proceed with enforcement actions despite Celsius’s ongoing legal challenges.

Procedural Hurdles Could Delay Auction Execution

Even if Equinaire proceeds with the planned auction on 8 September, the transfer of Celsius’s MMCI shares would require a Certificate Authorizing Registration from the Philippine Bureau of Internal Revenue. This tax clearance process typically spans 6-8 weeks, potentially providing Celsius with a window to pursue further court motions, including a Motion for Reconsideration and an appeal to the Court of Appeals, as well as interim arbitration orders.

Celsius Prepares Arbitration and Legal Appeals

Celsius is actively revising its Notice of Arbitration to formally commence proceedings where the merits of the dispute will be fully examined. Concurrently, the company plans to file a Motion for Reconsideration against the Court’s denial of its interim protection petition and is prepared to escalate the matter to the Court of Appeals if necessary.

This legal and procedural tug-of-war highlights the complexity and high stakes surrounding control of MMCI, a key copper-gold asset in the Philippines. The outcome of arbitration and court appeals will be pivotal in determining Celsius’s future ownership and operational role in the project.