MANILA, Philippines — Australian-listed mining company Celsius Resources Ltd. is fighting to prevent the planned auction of its 40-percent interest in the Makilala Mining Company Inc. (MMCI), which is associated with the Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in Kalinga.
The legal battle intensified after the Makati Regional Trial Court denied a petition by Celsius subsidiary Makilala Holding Ltd. (MHL) seeking interim protection against the foreclosure and possible sale of its MMCI stake.
But the court ruling does not settle the larger dispute.
Celsius said the court did not determine that an event of default had occurred, that any alleged default was incurable, or that Equinaire Holdings Ltd. was ultimately entitled to foreclose on the shares. The company said those substantive issues remain disputed and are expected to be addressed through arbitration.
Auction scheduled for Sept. 8
The immediate pressure point is a planned public auction of MHL’s 40-percent interest in MMCI on Sept. 8, 2026.
Equinaire, a wholly owned subsidiary of India’s Kiri Industries Ltd., has asserted enforcement rights over the shares following a dispute involving an Omnibus Loan and Security Agreement (OLSA).
According to Celsius’ latest corporate update, Equinaire issued a notice of resumption of foreclosure and a notice of disposition after a previously issued Temporary Order of Protection was lifted following the posting of a P201-million counterbond.
The proposed auction would reportedly carry a minimum bid of $5 million, with the shares offered on an “as is, where is” basis. Equinaire has also reserved the right to participate in the auction.
Celsius preparing another legal challenge
Celsius said it intends to seek reconsideration of the Makati court’s decision. If that effort fails, MHL plans to appeal to the Court of Appeals, according to reports.
The company is also revising its notice of arbitration to put the core contractual issues before an arbitral tribunal, including whether the alleged defaults actually occurred and whether Equinaire has the right to enforce the security over the MMCI shares.
The dispute reportedly involves several alleged defaults cited by Equinaire, including Celsius’ notice concerning the relinquishment of shares by Sodor Inc., information-security incidents involving MMCI, and Celsius’ efforts to obtain court protection. Celsius disputes the allegations and maintains that the contractual conditions required for foreclosure have not been established.
Why the MCB project matters
The MMCI stake is tied to the Maalinao-Caigutan-Biyog Copper-Gold Project, a major proposed mining development in Kalinga.
Celsius has previously disclosed plans involving an updated feasibility study and front-end engineering and design work for the project. Earlier company disclosures said the project was being advanced toward development, with financing discussions involving potential partners and the Maharlika Investment Corp.
A 2025 Celsius disclosure also described a proposed mine producing through a 2.28-million-ton-per-year processing plant, with projected first-10-year average grades of about 1.14% copper and 0.54 grams per ton of gold. Those figures come from the company’s project studies and should not be interpreted as guaranteed future production.
The project has therefore become the center of a much larger dispute involving financing, corporate control, ownership arrangements and enforcement rights.
The Sodor dispute adds another layer
Celsius’ latest corporate disclosure also detailed a separate dispute involving Sodor.
Under agreements reached in 2023, Sodor was to acquire a 60-percent legal interest in MMCI for P300 million, while its affiliate PMR Holding Corp. was expected to subscribe for shares in the project’s proposed processing company.
The parties had extended the relevant payment deadline to February 2026. Celsius subsequently said Sodor’s payment obligations had not been completed within the agreed period and issued a notice requiring the MMCI shares to be relinquished.
Sodor later sought to pay the P300 million, while Celsius disputed the timing and contractual consequences of that payment.
A legal battle that is not over yet
Recent reports from Inquirer.net, Manila Bulletin and Malaya all point to the same immediate development: Celsius is attempting to stop or delay the Sept. 8 auction while pursuing additional legal remedies.
Importantly, the court’s denial of interim protection should not be portrayed as a final judgment that Equinaire owns the right to seize or sell the stake.
Instead, the dispute now enters a potentially consequential next phase: Celsius’ motion for reconsideration, a possible Court of Appeals challenge and arbitration over the underlying loan agreement and alleged defaults.
Celsius has also pointed to the tax-clearance process that would be required before a successful auction purchaser could complete the transfer of the shares. The company said the process could take at least 27 working days, potentially giving it additional time to pursue legal remedies.
For investors and the Philippine mining sector, the Sept. 8 auction could therefore be only the next chapter—not the conclusion—of the fight over one of Kalinga’s closely watched copper-gold projects.
WWC ONE MEDIA J.M.S
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