Celsius Resources (ASX, AIM: CLA) is pursuing reconsideration, appeal and arbitration after a Philippine court declined to block the scheduled 8 September auction of its 40% interest in the Makilala copper-gold project (MCB Project) — though the company points to a tax-clearance requirement that would prevent any sale from completing for weeks.
The Regional Trial Court of Makati has denied Makilala Holding’s (MHL) petition to injunct the foreclosure and auction of its stake in project company Makilala Mining Company (MMCI) until arbitration concludes. The court found MHL had not sufficiently established “irreparable injury”, reasoning that the potential loss from a foreclosure is primarily economic and could be remedied through arbitration.
Celsius has drawn attention to the limits the court placed on its own ruling. The court expressly stated that denying the petition was not a finding that an event of default had occurred, that any default was incurable, or that Equinaire Holdings — the Kiri Industries subsidiary seeking to enforce — is entitled to foreclose. It confirmed those substantive questions remain disputed and open for determination by arbitration, and that the arbitral tribunal has authority to rule on the validity of any foreclosure and grant interim relief.
The company says it will file a motion for reconsideration by the end of this week and, if that is denied, appeal to the Court of Appeals. In parallel, it is revising its notice of arbitration to commence proceedings in which the merits of the dispute can be fully argued. Celsius continues to reject Equinaire’s asserted defaults under the loan and security agreement — including later claims tied to information-security incidents at MMCI and to MHL’s own move to seek court protection — maintaining that no default arises on the facts and that the pre-conditions for enforcement have not been met.
Even if the auction goes ahead on 8 September, Celsius notes any sale would have limited immediate effect: a buyer could only register a share transfer with the Philippine Securities and Exchange Commission after obtaining tax clearance from the Bureau of Internal Revenue, a process that typically runs at least 27 working days — roughly six to eight weeks. Celsius says that window gives it further time to pursue reconsideration, an appeal and interim arbitration orders.
