Celsius Resources Ltd (ASX:CLA) has received an exploration permit for the Maalinao-Caigutan-Biyog (MCB) project in the Philippines which was obtained as part of its acquisition of Anleck Limited, a private UK company with a suite of copper-gold projects in the country.
The company entered into a binding share sale agreement in September 2020 to acquire Anleck, subject to meeting several conditions precedent.
With issuance of the exploration permit by the Mines and Geosciences Bureau (MGB) of Philippines, a major step has been taken in fulfilling contractual obligations for completing the share sale agreement.
Preparing to deliver milestones
Anleck chairman and Celsius director designate Martin Buckingham said: “This is an important step in developing the MCB project which is a world-class opportunity with the potential to be a future significant copper and gold producer within the Asia Pacific region, to be implemented under the Philippine-registered company Makilala Mining Co Inc.
“Our dynamic in-country team is now preparing to deliver additional milestones as part of the mine development initiatives, working closely with local indigenous communities, stakeholders and the National Government under a responsible mining approach.”
The MCB project
MCB, which is in Cordillera Administrative Region in the Philippines and around 320 kilometres north of Manila, hosts a large, high-grade copper-gold porphyry deposit based on historical exploration.
It is the flagship project within the Anleck portfolio which also includes the well-advanced Sagay Project, in Negrous Occidental and the Malangsa prospect in Southern Leyte.
Results from historical drilling at MCB, conducted by Makilala Mining, which was a wholly-owned subsidiary of Freeport-McMoRan and is now owned by Anleck, include:
- 384 metres at 1.25% copper and 0.46 g/t gold, within 767 metres at 0.77% copper & 0.27 g/t gold; and
- 177 metres at 1.98% copper and 0.95 g/t gold within 630.5 metres at 0.81% copper and 0.32 g/t gold.
The third renewal of the Exploration Permit grants the company an exclusive right to carry-out mineral exploration, preparation of completion of studies and filing of the declaration of mining project feasibility and the pertinent Mineral Agreement.
The permit will be in effect for two years from the date of issuance with an extension permitted if required.
With the ongoing support from key stakeholders at the local and national levels, the company has ramped up preparations to start drilling operations by early 2021 following the filing of a Declaration of Mining Project Feasibility.
With the issuance of the exploration permit and satisfaction of due diligence, the Anleck transaction will be completed following a shareholder meeting to ratify the transaction.
Celsius is awaiting the completion of an independent expert report which will form part of the Notice of Meeting to be sent to shareholders.
The meeting is expected to be held in January 2021.