New agreement sees MCB Project move a step closer to development
- Celsius has signed a Non-Binding Term Sheet with Sodor, Inc. and the PMR
Group outlining the terms upon which Celsius proposes to secure a local
partner for the development of the MCB Project.
- This partnership undertaking satisfies the requirement for securing a Mineral
Production Sharing Agreement (MPSA) with the Philippine Government in order
to build and operate the MCB Project.
- Subject to the execution of a binding agreement, up to US$43m to be received
by Celsius which the parties agree to apply towards financing the MCB Project.
We are pleased to announce that our wholly owned Philippine subsidiaries, Makilala Mining Company, Inc. (“MMCI”) and PDEP, Inc. (“PDEP”), have signed a Non-Binding Term Sheet with Sodor Inc. and PMR Holding Corp. to be the local partners for the development of the Company’s MCB Project.
The partnership will be formalised through the signing of a binding agreement. The Non-Binding Term Sheet outlines the parties’ common goal of applying for a Mineral Production Sharing Agreement (MPSA) with the Philippine government.
Under the Philippine Mining Act of 1995, companies applying for the exploration, development, and utilisation of natural resources under an MPSA must be at least 60% Filipino-owned. Refer to Company’s announcement dated 15 November 2022 for further information disclosed on the MPSA. MMCI will be the owner and holder of the mining rights, interests, and licenses, particularly the MPSA as a 60:40 company with 40% ownership by CLA and 60% owned by Sodor, Inc.
Celsius Chairman and MMCI Chairman and President Atty. Julito R. Sarmiento said:
“We are very pleased to engage Sodor Inc. and the PMR Holding Corp. (PMR) as our local partners for the development of 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 Environmental, Social and Governance (ESG) principles in the energy industry into the successful development of MCB Project and the renaissance of our country’s mining industry.”
To read the full announcement, please click here.
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