The Maharlika Investment Corporation (MIC) has approved a $76.4 million bridge loan facility for Makilala Mining Company, Inc. (MMCI) to advance the MCB copper-gold project in Kalinga, marking a significant milestone in the project’s development. The funding will cover feasibility study updates, early infrastructure activities, and compliance with financial requirements under MMCI’s Mineral Production Sharing Agreement (MPSA) with the Philippine Government.
This development was disclosed by MMCI parent firm Celsius Resources Limited to the Australian Securities Exchange (ASX), affirming investor confidence in the project’s economic and technical viability. The MCB Project is considered a strategic mining initiative, with MIC’s financial support reinforcing the government’s commitment to responsible and sustainable resource development.
The $76.4 million bridge loan facility is a short-term financing mechanism designed to provide immediate funding while MMCI continues to secure long-term investment for the full-scale development of the MCB Project. This facility ensures that the company can proceed with critical preparatory activities, including the updating of feasibility studies, front-end engineering design (FEED), and early-stage infrastructure construction such as the main access road in collaboration with the Kalinga Provincial Government.
A binding term sheet serves as a formal agreement outlining the key terms and conditions of the financing arrangement, providing legal certainty for both MMCI and MIC. This document sets the foundation for a definitive agreement, detailing funding disbursement conditions, repayment terms, and project milestones. The binding term sheet also enables MMCI to meet financial capability requirements under its MPSA, a crucial step in securing full mining permits and approvals.
The Maharlika Investment Corporation (MIC), the Philippine Government’s sovereign wealth fund manager, plays a vital role in driving long-term national development through strategic investments in industries that foster economic growth and job creation.
“Our investment decision reflects a shared commitment to the sustainable, inclusive, and regenerative development of the MCB Project. We envision the MCB Project as a benchmark for the Philippine Government’s call for ‘beyond responsible mining,’ setting a new standard for resource development in the Philippines, ” MIC Chief Executive Officer Rafael D. Consing, Jr. said in highlighting the significance of the investment.
MIC’s investment aligns with the government’s mandate to support projects that contribute to economic stability, poverty reduction, and environmental responsibility. The MCB Project is expected to create jobs, stimulate local business growth, and provide skills-based training for the Balatoc Indigenous Cultural Community, reinforcing MIC’s goal of socially responsible investment.
With the initial funding tranche of $10 million, MMCI is set to begin early development activities, allowing for immediate mobilization of technical teams and infrastructure improvements. This financial backing also reduces MMCI’s reliance on direct funding from its parent company, Celsius Resources Limited, allowing Celsius to focus on finalizing additional equity funding for the project’s total estimated capital expenditure.
“The Maharlika Investment Corporation’s decision to invest in the MCB Project underscores the Philippine Government’s strong commitment to advancing the critical metals sector and fostering a responsible mining industry that delivers meaningful benefits to host communities. In this case, we are particularly grateful for the support extended to the Balatoc Indigenous Cultural Community, which stands to gain from this partnership,” Celsius Executive Chairman Atty. Julito R. Sarmiento, meanwhile said.
Sarmiento further emphasized that the company remains committed to upholding environmental and social responsibilities, ensuring that the MCB Project meets global sustainability standards while delivering long-term value to investors and host communities.
The success of the MCB Project could set a precedent for future mining investments in the country, demonstrating how collaborative efforts between the government and the private sector can drive responsible and inclusive economic growth.
What are your thoughts on the Philippine Sovereign Wealth Fund’s investment in the MCB Project? Do you believe this financing model can help boost responsible mining and economic growth in the country? Share your insights in the comments below and follow Power Philippines for the latest updates on energy and mining developments!
