Copper-gold developer, Celsius Resources, is moving to block a public auction of its 40% interest in the Makilala copper-gold project (MCB Project), scheduled for 8 September 2026, after a Philippine court fully lifted the order that had been protecting the stake, while a second legal front has opened over a rival claim to a controlling interest in the project company.
The Regional Trial Court of Makati has now lifted the Temporary Order of Protection that had shielded the 40% holding in Makilala Mining Company (MMCI) held by Celsius subsidiary Makilala Holding (MHL) from foreclosure by Equinaire Holdings, a subsidiary of Kiri Industries. Both sides had contested the terms — MHL sought reconsideration, while Equinaire pushed to cut or remove the required counterbond — and the court denied both motions. In doing so, it stressed that its ruling was confined to the counterbond mechanism and did not resolve the underlying dispute, including whether any event of default has occurred or whether Equinaire is entitled to foreclose. Equinaire subsequently posted the roughly A$4.6 million counterbond, and the protection order fell away.
Equinaire has since issued notices of resumed foreclosure and disposition, setting the auction for 8 September. Under the terms, the shares would be sold as-is with a minimum bid of US$5 million, consortium bidding would be barred, and Equinaire has reserved the right to match the highest third-party offer and acquire the stake itself.
Celsius continues to reject the basis for the enforcement action, disputing not only the original alleged default but two further events of default Equinaire has since claimed — one relating to information-security incidents at MMCI, and another asserting that MHL’s own move to secure court protection breached the loan agreement. The company maintains that no default arises on the facts and that, in any event, the contractual pre-conditions for enforcement have not been met. MHL has a pending petition before the same Makati court seeking to injunct any foreclosure or sale until arbitration between the parties concludes; that petition is awaiting resolution.
On a separate front, Sodor, Inc. has deposited PHP300 million (about A$6.8 million) with the court and filed a consignation application seeking to compel MHL to accept the payment in exchange for a 60% interest in MMCI. Celsius’s position is that the arrangement Sodor is relying on — a 2023 agreement under which Sodor was to acquire 60% of MMCI and its affiliate PMR was to invest in project processing company PDEP — lapsed when the payment deadline expired on 16 February 2026. Celsius says it gave notice that the shares must be relinquished, and that Sodor’s attempt to pay came roughly a month too late.
The Bataan court declined MHL’s request to pause the consignation case for arbitration, finding the matter was one for the courts, though it accepted that arbitration could still proceed on the parties’ contractual claims. MHL has sought reconsideration and has signalled it will appeal to the Court of Appeal and, if necessary, the Supreme Court.
