Celsius Resources Ltd (ASX:CLA, AIM:CLA) is closer to becoming the newest copper producer in the Philippines after the Philippine Department of Environment and Natural Resources approved the MCB Project’s mining permit.
The market has responded enthusiastically, sending CLA shares climbing as much as 53.85% in the first hour of ASX trading to A$0.02.
This permit grants CLA exclusive rights to undertake exploration, development and commercial production of copper and associated minerals at MCB for the next 25 years, with an option to renew for a further 25.
It marks the first copper project to be approved in the Philippines in 15 years, opening the path to mine development at the MCB Copper-Gold Project in northern Luzon.
Value for shareholders and community
“The issuance of the mining permit has been much awaited by Celsius and the Balatoc Community,” Celsius Resources executive chair Attorney Julito R Sarmiento said.
“Now is our chance to deliver on our firm commitment to work with the Government and the local communities to develop the MCB Project in a sustainable manner that creates value not only for our shareholders but also for our communities.
“We are grateful to the Philippine Government under the bold leadership of His Excellency President Ferdinand R Marcos, Jr. and to the Department of Environment and Natural Resources under the visionary stewardship of Secretary Maria Antonia Yulo-Loyzaga for supporting the MCB Project.
“We are seriously taking the Government’s call for the project to go beyond compliance by striking a balance between keeping the business viable, protecting and rehabilitating the environment, uplifting local communities, and supporting the Government’s socio-economic agenda.
“With strong Government support, we are confident that we can make this happen.”
The MCB Project holds a mineral resource estimate of 338 million tonnes at 0.47% copper and 0.12 g/t gold for a total of 1.6 million tonnes contained copper and 1.3 million ounces of gold.
From explorer to developer and producer
“The grant of the MCB mining permit marks the progression of Celsius from being known as an exploration company to a mineral resource developer, and eventually a mine operator,” Celsius Resources managing director Peter Hume said.
“Credit goes out to our hard-working in-country team who strived to get the project up to this stage in such a short timeframe amidst all the challenges.
“Over the last 18 months, the company has been interfacing with potential investors who have shown resounding interest in the MCB Project but have been also waiting for the issuance of the mining permit.
“With this now in hand, the company will proceed with finalising funding options for the project.
“The in-country team has commenced planning for the next exciting phase in the development of the project. We wish to thank shareholders for their patience, trust and continued support.”
Read: Celsius Resources is a potential near-term, low-cost copper producer: WH Ireland
CLA’s scoping study has highlighted the strong economic position of the MCB Project, which is expected to have a net present value (NPV8) of US$464 million and an internal rate of return of 31% assuming a copper price of US$4.00 per pound and gold price of US$1,695 per ounce.
According to Market Index, copper currently sits at US$4.12 per pound, and gold is performing very well, at US$2,158 per ounce.