MCB Project’s $76M Loan: Can Celsius Deliver Copper by 2027 Amid Rising Costs?

MCB Project Moves Toward Construction

Celsius Resources Limited has taken a significant stride in advancing its Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in the Philippines by initiating an updated Feasibility Study alongside Front-End Engineering Design (FEED). This dual-track approach aims to refine the project’s design and engineering details, setting the stage for construction and first copper production targeted for 2027.

The momentum was enabled by a substantial US$76.4 million bridge loan from the Philippine sovereign wealth fund manager, Maharlika Investment Corporation (MIC). The initial drawdown under this facility provides critical financial backing to support the FEED and feasibility update, underscoring confidence from a key institutional investor in the project’s prospects.

Technical Expertise and Drilling Programs

Celsius has engaged a suite of reputable technical partners to execute the engineering and geological work. Ausenco, a global engineering consultancy, has been contracted to lead the engineering design, which will underpin tender packages for early works and main construction contracts. Complementing this, DrillCorp Mining Resources and Construction Corp. is conducting geotechnical and hydrogeological drilling to gather detailed subsurface data. This information will be pivotal in optimizing the underground mine plan and surface infrastructure layout.

Further technical input comes from DMT Consulting Ltd and Resource Development Consultants Ltd, who are collaborating to update the mine plan and provide detailed hydrogeological and geotechnical analyses. These efforts collectively aim to enhance the technical robustness and economic viability of the MCB Project.

Community Engagement and Social Programs

Recognizing the importance of social license, Celsius has initiated several community-focused programs as part of the MCB Project’s Social Development and Management Program (SDMP). In partnership with the Philippine Technical Education and Skills Development Authority (TESDA), the company has started training local residents in basic construction skills aligned with national competency standards. This initiative not only supports the project’s workforce needs but also equips the community with transferable skills for broader employment opportunities.

Additionally, a financial literacy program tailored to local needs aims to empower households and community groups to manage income prudently and foster sustainable livelihoods. The establishment of a Community Education Committee by local tribal and barangay councils further demonstrates a commitment to inclusive education through scholarship programs under the SDMP.

Portfolio Progress and Corporate Updates

Beyond the MCB Project, Celsius is advancing environmental approvals for its Sagay Copper-Gold Project in the Negros Islands, having submitted its Environmental Impact Statement for regulatory review. Meanwhile, discussions continue regarding the potential disposal of its 95% interest in the Opuwo Cobalt Project in Namibia, though no binding agreements have yet been reached.

On the corporate front, Celsius completed a tranche of its equity placement, raising approximately A$1.748 million to bolster its working capital and project development. Board changes were also announced, with Neil Grimes appointed as Executive Director and Mark van Kerkwijk transitioning to a Non-Executive Director role. The company ended the quarter with a cash balance of A$4.456 million and access to a further A$10 million equity facility with Patras, providing financial flexibility for ongoing activities.