- Celsius Resources (CLA) signs a term sheet with Philippines-based Sodor and PMR Group for the development of CLA’s Maalinao-Caigutan-Biyog (MCB) copper-gold project
- Sodor and PMR have proposed to be Celsius’ local partners to help develop the project
- All parties will now seek to apply for a mineral production sharing agreement with the Philippine Government
- Upon a binding agreement being signed, Sodor and PMR will pay Celsius up to US$43 million (A$62.9 million), which will go towards financing the MCB project
- CLA shares are up 5.88 per cent to trade at 1.8 cents at 1:40 pm AEDT
Celsius Resources (CLA) has signed a term sheet with Philippines-based Sodor and PMR Group for the development of CLA’s Maalinao-Caigutan-Biyog (MCB) copper-gold project.
Celsius inked the non-binding sheet through its Philippine subsidiary, with Sodor and PMR proposing to become local partners for the development of the project.
While this partnership is yet to be formalised with a binding agreement, the initial term sheet outlines the parties’ shared goal of applying for a mineral production sharing agreement (MPSA) with the Philippine Government.
Under the Philippine Mining Act of 1995, companies applying to explore, develop, and utilise natural resources under an MPSA must be at least 60 per cent Filipino-owned.
Celsius Chair Julito R Sarmiento said he was “very pleased” to engage Sodor and PMR to help develop the MCB project.
“We are excited by the combined investment proposed by Sodor Inc and PMR, as both are strongly positioned to leverage a proven successful track record of profitability, operational efficiency, developing a world-class workforce, and commitment to ESG principles in the energy industry into the successful development of MCB project,” Mr Sarmiento said.
Under the term sheet, Sodor will purchase 30 million shares in Celsius’ subsidiary, Makilala Mining Company (MMCI), resulting in Sodor owning 60 per cent of the 50 million outstanding shares in MMCI.
Subject to a binding agreement being signed, Sodor and PMR will pay Celsius a consideration of up to US$43 million (A$62.9 million) which will go towards financing the MCB project.
CLA shares were up 5.88 per cent to trade at 1.8 cents at 1:40 pm AEDT.