Celsius Resources (ASX, AIM: CLA) has confirmed that a public auction of its subsidiary’s 40% interest in the Makilala copper-gold project (MCB Project) proceeded on 8 September, with Equinaire Holdings — the Kiri Industries subsidiary seeking to enforce a disputed loan — the sole and winning bidder, though the sale’s outcome remains subject to pending arbitration.
Equinaire secured the stake in project company Makilala Mining Company (MMCI) with a credit bid of about US$5.01 million. No other registered bidders attended and no competing bids were received. Celsius said it was not aware of any publicity or promotion of the auction. Representatives of Celsius subsidiary Makilala Holding (MHL) attended to place on record that any result of the foreclosure sale remains subject to the final determination of the arbitration between MHL and Equinaire.
Celsius continues to reject the basis for the sale. The company maintains that no event of default has arisen under the loan and security agreement, that the contractual pre-conditions for enforcement have not been met, and that Equinaire’s claimed defaults should be referred to arbitration under the agreement’s dispute-resolution provisions.
The company also points to a procedural hurdle that would delay any change of ownership taking effect. Before Equinaire can register a transfer of the MMCI shares with the Philippine Securities and Exchange Commission, it must first obtain tax clearance from the Bureau of Internal Revenue — a process that typically takes at least 27 working days, or roughly six to eight weeks. Celsius says that window gives it further time to pursue protective measures.
Celsius intends to file a motion for reconsideration and, if that is denied, to appeal to the Court of Appeals and, if necessary, the Supreme Court of the Philippines. In parallel, it will progress arbitration to seek an injunction over the transfer of the shares, contest the alleged events of default, and pursue damages against Equinaire.
