TIDMCLA
RNS Number : 6539Q
Celsius Resources Limited
19 October 2023
ASX/AIM RELEASE
19 OCTOBER 2023
Celsius Collaborates with Kalinga LGU for MCB Road Access
HIGHLIGHTS
-- Memorandum of Agreement signed between Makilala Mining and
the Kalinga Provincial Government to jointly develop the road
alignment for the MCB Project's access from mine site to port.
_______________________________________________________________________________
Celsius Resources Limited ("CLA" or "Celsius") (ASX, AIM: CLA)
is pleased to announce that its Philippine subsidiary, Makilala
Mining Company, Inc. ("MMCI" or "the Company"), has signed a
binding Memorandum of Agreement ("MOA") with the Local Government
Unit of the Province of Kalinga ("LGU") for the development of the
access road for its flagship Maalinao-Caigutan-Biyog Copper-Gold
Project ("MCB" or "the Project").
The MOA represents the commitment of both parties, MMCI and the
LGU, to jointly undertake the completion of the 84.5-kilometer
Lubuagan-Batong Buhay-Abra Road Project ("Road Project") which will
pass through the MCB Project area and parallel to its estimated
road alignment from the mine site to existing roads leading to its
port of interest in Ilocos Sur.
Celsius Executive Chairman, Atty. Julito R. Sarmiento, said:
"In the development of the MCB Project, we have always consulted
and partnered with the local government to align our plans and
programs for the efficient use of resources to achieve a common
goal. We are grateful that the Provincial Government, through the
leadership of Governor James Edduba, is receptive in collaborating
with us to pave the way for the MCB Project's infrastructure needs,
as well as those of the local communities."
Kalinga Provincial Governor, James S. Edduba said:
"We are happy to collaborate with MMCI on the development of
this Road Project. We are envisioning that this Road Project, once
implemented, will contribute to the sustainable and inclusive
economic growth and rapid progress of the Province of Kalinga,
attract further development opportunities, and major business
investments for our constituents."
Signing of the MOA at the MCB Project Area in Kalinga,
Philippines,
with Kalinga Provincial Governor James S. Edduba and CLA
Managing Director Peter Hume
Under the MOA, MMCI has agreed to fund the construction and
development of approximately 21-kilometers of road alignment ("Road
Alignment") which is part of the Road Project, including the
development of the detailed design and construction plans of the
road incorporating the design criteria that should cover the
minimum requirements to support the main construction and full
operation of the MCB Project, in close coordination with the
LGU.
On their part, the LGU will obtain the necessary permits and
approvals from the concerned national and local government agencies
and undertake land acquisition procedures in full compliance with
all relevant national and local laws, rules and regulations,
including strict adherence with Republic Act No. 3019 on Anti-Graft
and Corrupt Practices Act and ethical standards[1].
The funding guidelines of the MOA are as follows. MMCI will only
release funding for each active phase of the Road Alignment in
accordance with an agreed schedule of the phases as follows:
i. Detailed Engineering - The detailed engineering phase shall
include the development of a detailed scope of work for the
construction of the Road Alignment for the purpose of bidding. The
LGU will deploy a survey team to conduct the preliminary ground
assessment of the Road Alignment, and MMCI will engage a competent
engineering firm or consultant to develop the detailed engineering
and construction drawings of the Road Alignment to determine the
preferred alignment and construction cost based on the outcome of
the technical work.
ii. Bidding and Awarding of the Road - This phase includes the
tendering process, in full compliance with the relevant laws, for
the Road Alignment.
iii. Construction - The Road Alignment construction will
coincide with the development of the MCB Project and be delivered
in advance of major construction activities of and based on a
timeline and schedule provided by MMCI.
The actual financial impact of the binding MOA to the Company
will be determined when the Detailed Engineering phase has been
completed, and the timeline for the Road Project and Road Alignment
will be determined as part of the agreed schedule of phases as
detailed above.
The MOA shall remain binding until the obligations of both
parties have been performed, unless expressly terminated by mutual
written consent between the parties. Termination of the MOA shall
be in writing and will take effect within thirty working days from
receipt of the written notice.
The significance of the binding MOA to the Company is that it
allows MMCI to have the most appropriate Road Alignment to allow
for the cost-efficient and safe transport of oversized and
overweight cargo, and concentrate products, during the
construction, development and operation stages of the MCB Project.
In addition, it will allow MMCI access to use the nearest port in
Ilocos Sur to ship its concentrate products to during its operation
and commercial production stage of the MCB Project.
MCB COPPER-GOLD PROJECT
The MCB Copper-Gold Project (MCB) is located in the Cordillera
Administrative Region in the Philippines, approximately 320km north
of Manila (Figure 1). It is the flagship project within the
Makilala portfolio which also contains other key prospects in the
pipeline for permit renewal/extension.
A maiden JORC Compliant Mineral Resource Estimate was declared
for the MCB Project in January 2021, comprising 313.8 million
tonnes @ 0.48% copper and 0.15g/t gold, for 1.5 million tonnes of
contained copper and 1.47 million ounces of gold, of which 290.3
million tonnes @ 0.48% copper and 0.15 g/t gold is classified as
Indicated and 23.5 million tonnes @ 0.48% copper and 0.10 g/t gold
is classified as Inferred.
An updated JORC compliant Mineral Resource Estimate was
announced for the MCB Project on 12 December 2022, comprising 338
million tonnes @ 0.47% copper and 0.12 g/t gold, for total of 1.6
million tonnes of contained copper and 1.3 million ounces of gold,
reported to a preferred lower cut-off grade of 0.2% copper.
A Study for the MCB Project was announced by CLA on 1 December
2021, which identified the potential for the development of a
copper-gold operation with a 25-year mine life. The Study was based
on an underground mining operation and processing facility to
produce a saleable copper-gold concentrate.
Highlights from the Study include a Post tax NPV (8%) of US$464m
and IRR of 31%, assuming a copper price of US$4.00/lb and gold
price of US$1,695/oz. Initial capital expenditure is estimated to
be US$253m with a payback period of approximately 2.7 years. The
designed mine production is matched to a 2.28Mtpa processing plant
which will treat ore with an estimated average grade of 1.14%
copper and 0.54g/t gold for the first 10 years of planned
production with a C1 [2] cash costs at just US$0.73/lb copper, net
of gold credits.
Figure 1. Location of the MCB Project in the province of
Kalinga, Northern Luzon, Philippines.
Listing Rule 5.19 and 5.23 Disclosures
The Company confirms that it is not aware of any new information
or data that relates to Exploration Results and Mineral Resources
at the MCB Project and that all material assumptions and technical
parameters underpinning the Mineral Resource continue to apply. The
Company notes that, as disclosed in this announcement and in
previous announcements, a drilling program is currently underway at
the MCB Project the results of which will be incorporated into an
updated Mineral Resource in the future and that the current Scoping
Study may provide new assumptions and parameters for use in that
Mineral Resource.
The Company confirms that all material assumptions underpinning
the production targets and forecast financial information in the
Scoping Study continue to apply and have not materially
changed.
Forward Looking Statements
Some of the statements appearing in this announcement may be in
the nature of forward-looking statements. You should be aware that
such statements are only predictions and are subject to inherent
risks and uncertainties. Those risks and uncertainties include
factors and risks specific to the industries in which the Company
operates and proposes to operate as well as general economic
conditions, prevailing exchange rates and interest rates and
conditions in the financial markets, among other things. Actual
events or results may differ materially from the events or results
expressed or implied in any forward-looking statement.
No forward-looking statement is a guarantee or representation as
to future performance or any other future matters, which will be
influenced by a number of factors and subject to various
uncertainties and contingencies, many of which will be outside the
Company's control.
The Company does not undertake any obligation to update publicly
or release any revisions to these forward-looking statements to
reflect events or circumstances after today's date or to reflect
the occurrence of unanticipated events, except as required by law.
No representation or warranty, express or implied, is made as to
the fairness, accuracy, completeness or correctness of the
information, opinions or conclusions contained in this
announcement. To the maximum extent permitted by law, none of the
Company's Directors, employees, advisors, or agents, nor any other
person, accepts any liability for any loss arising from the use of
the information contained in this announcement. You are cautioned
not to place undue reliance on any forward-looking statement. The
forward-looking statements in this announcement reflect views held
only as at the date of this announcement.
This announcement has been authorised by the Board of Directors
of Celsius Resources Limited.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018.
Celsius Resources Contact Information
Level 5, 191 St. Georges Terrace
Perth WA 6000
PO Box 7059
Cloisters Square PO
Perth WA 6850
P: +61 2 8072 1400
E: info@celsiusresources.com.au
W: www.celsiusresources.com
Celsius Resources Limited
Peter Hume P: +61 2 8072 1400
(Managing Director) E: info@celsiusresources.com.au
W: www.celsiusresources.com
Multiplier Media
(Australia Media Contact)
Jon Cuthbert M: +61 402 075 707
E: jon.cuthbert@multiplier.com.au
Tavistock Communications
(UK Media and Investor Relations) +44 (0) 207 628 3396
Charles Vivian M: 0044 7977297903
E: charles.vivian@tavistock.co.uk
Tara Vivian-Neal M: 0044 7394408654
E: tara.vivian-neal@tavistock.co.uk
Beaumont Cornish Limited
(Nominated Adviser)
Roland Cornish/Felicity Geidt/Andrew +44 (0) 207 628 3396
Price E: corpfin@b-cornish.co.uk
SP Angel Corporate Finance LLP
(Broker)
John Meyer/Ewan Leggat/Harry Davies-Ball +44 (0) 203 470 0470
E: contact@spangel.co.uk
[1] RA 3019 is t he main anti-corruption law in the Philippines.
It enumerates certain acts of public officials that constitute
graft or corrupt practices, or which may lead thereto:
https://lawphil.net/statutes/repacts/ra1960/ra_3019_1960.html
[2] C1 costs include all direct costs in mining, processing,
general and administration, and selling (including freight).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCMLBFTMTBBMIJ
(END) Dow Jones Newswires
October 19, 2023 02:17 ET (06:17 GMT)
Celsius Resources (LSE:CLA)
Historical Stock Chart
From Jul 2024 to Aug 2024
Celsius Resources (LSE:CLA)
Historical Stock Chart
From Aug 2023 to Aug 2024