Celsius Resources Ltd’s Philippine subsidiary, Makilala Mining Company Inc (MMCI), has secured a 25-year term (the agreement is renewable for an additional 25 years) under a Mineral Production Sharing Agreement (MPSA) for its flagship Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in northern Luzon, strengthening the project’s investment appeal.
With the green light now given, Celsius has outlined a robust development pathway for the project, positioning it as a cornerstone of the country’s emerging sustainable mining sector.
The project boasts a substantial Joint Ore Reserves Committee (JORC) Mineral Resource Estimate (MRE) of 338 million tonnes, containing 1.6 million tonnes of copper and 1.3 million ounces of gold. According to Celsius, the project is fully permitted, shovel-ready and enjoys strong support from both government agencies and the local community.
A key environmental feature is its design, which eliminates the need for a tailings dam, aligning with sustainable development goals.
The project’s economic fundamentals are underpinned by high-grade ore, with an average copper head grade of 1.14% and gold head grade of 0.54 grams per tonne over the first 10 years of mine life. These grades support a low-cost operation and a high internal rate of return (IRR).
Celsius has already secured approximately A$120 million (US$76.4 million) in initial debt financing from the Philippines Sovereign Wealth Fund, with a clear pathway toward full project funding and engineering works are anticipated to start within weeks.
The company expects the project to generate a net profit of at least US$1.5 billion after all taxes and royalties and believes MCB is well-positioned to lead a new wave of environmentally responsible mining in the Philippines.
Long term rights
The MPSA, issued by the Philippine Department of Environment and Natural Resources (DENR), confirms MMCI’s long-term rights to develop the MCB Project in the Cordillera Administrative Region and is a formal acknowledgement of MMCI’s financial capability to undertake the project, satisfying all provisional conditions for the grant of the MPSA.
This milestone follows the DENR’s acceptance of a binding term sheet for a bridge loan facility of up to US$76.4 million, executed in February 2025 between MMCI and the government-owned Maharlika Investment Corporation (MIC), which outlines the principal financial terms supporting the project’s advancement.
“We are extremely pleased to have achieved this important regulatory milestone for the MCB Project. The acceptance of the Binding Term Sheet by the DENR and the MGB is not only a testament to MMCI’s commitment to responsible and well-funded development, but also reflects the strong support and credibility provided by our partnership with Maharlika Investment Corporation.
On behalf of CLA and MMCI’s management and staff, again, I would like to extend my heartfelt gratitude to MIC for their confidence and catalytic funding support to the Project, and to the DENR and MGB for their professionalism and guidance throughout the compliance process.
We remain committed to ensuring that the MCB project delivers lasting and sustainable economic benefits to our host communities, particularly in Balatoc, the Municipality of Pasil, and the Province of Kalinga, as well as meaningful contributions to national development, all while upholding environmental stewardship and shared prosperity.
Now that we have fulfilled our compliance with the conditions of the Mineral Production Sharing Agreement, we are in a strong position to proceed with mine development and construction. We remain steadfast on our commitment to sustainable development by balancing resource efficiency with environmental stewardship and social responsibility.”
Financially strong position
The term sheet was reviewed and endorsed by the Mines and Geosciences Bureau (MGB), which observed that:
- The agreement presents a structured and credible financial mechanism to support MMCI’s mining operations; and
- The participation of MIC substantially improves MMCI’s financial position and credibility, providing strong assurance of sustained backing.
MMCI is expected to submit all relevant and forthcoming financial documentation to both the DENR and MGB and will update its Three-Year Development/Utilisation Work Program in accordance with the terms of its Mineral Production Sharing Agreement (MPSA) and DENR Administrative Order No. 2010-21.
MIC and MMCI will now go ahead with the signing of the Omnibus Loan and Security Agreements and formalise the terms outlined in February’s Binding Term Sheet.
More about the MCB project
The MCB Copper-Gold Project, located approximately 320km north of Manila in the Cordillera Administrative Region of the Philippines, is the primary asset within the Makilala portfolio. This portfolio includes other projects undergoing permit renewal or extension.
A maiden JORC-compliant Mineral Resource Estimate for MCB was released in January 2021, reporting 313.8 million tonnes at 0.48% copper and 0.15g/t gold, equating to 1.5 million tonnes of contained copper and 1.47 million ounces of gold. Of this, 290.3 million tonnes were classified as Indicated and 23.5 million tonnes as Inferred.
An updated Mineral Resource Estimate published on 12 December 2022 reported 338 million tonnes at 0.47% copper and 0.12g/t gold, comprising 1.6 million tonnes of copper and 1.3 million ounces of gold. The breakdown includes 47 million tonnes Measured, 249 million tonnes Indicated, and 42 million tonnes Inferred.
A study released on 1 December 2021 indicated a 25-year mine life, post-tax NPV (8%) of US$464 million, IRR of 31%, and a payback period of 2.7 years, based on copper and gold prices of US$4.00/lb and US$1,695/oz respectively.