Maharlika ventures into mining, extends loan to Makilala
Rafael Consing Jr. — Photo from the Department of Finance
MANILA, Philippines — After securing a stake in the country’s national power grid and agreeing to establish a fund with a Thai conglomerate, the country’s sovereign wealth fund Maharlika Investment Corp. (MIC) is venturing into another sector: mining.
MIC has signed a binding term sheet with Makilala Mining Co. Inc., the local affiliate of Celsius Resources Inc., involving a bridge loan facility of up to $76.4 million for the firm’s flagship Maalinao-Caigutan-Biyog Copper-Gold project in the Cordillera Administrative Region, about 320 kilometers north of Metro Manila.
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The financing from Maharlika will be used to update the feasibility study and front-end engineering design of the planned mining project.
“Discussions on the additional equity funding required are ongoing, given total estimated capital expenditure of the project,” Celsius said.
Celsius said the loan from MIC marked a “critical milestone” in the mining project, allowing the “immediate commencement of work with the initial funding amount of $10 million.”
The loan has a tenor of three years for the entire facility covering the two omnibus loan and security agreements. It has an interest rate of 12.5 percent a year.
According to MIC CEO Rafael Consing Jr., the 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,” Consing added.
“In return, we pledge to fulfill our role as responsible stewards, ensuring the MCB project’s success while upholding environmental and social responsibilities,” Celsius executive chair Julito Sarmiento said.
