Celsius Resources (ASX:CLA) announced that the Philippine Department of Environment and Natural Resources (DENR) has confirmed the financial capability of its local affiliate, Makilala Mining Company.

The confirmation comes with the approval of a binding term sheet between Makilala and Maharlika Investment. It includes a US$76.4 million bridge loan facility to fund the Maalinao-Caigutan-Biyog (MCB) copper-gold project.

The mineral production sharing agreement for MCB is now locked in for 25 years and is renewable for another 25.

MCB, Makilala's flagship asset, is in the Cordillera Administrative Region, about 320 kilometres north of Manila.

Exploration work began in 2006 and has included surface mapping, sampling and magnetic surveys. Makilala is also pursuing permit renewals and extensions for other key prospects in its pipeline.

An extended period of diamond drilling ran from 2006 to 2013. Further research and technical work were completed leading to an updated interpretation of the local geology and associated copper-gold mineralisation.

In 2021, the project was reported to have a mineral resource estimate of 313.8 million tonnes at 0.48 percent copper and 0.15 grams per tonne gold for 1.5 million tonnes of contained copper and 1.47 million ounces of gold.

“We are extremely pleased to have achieved this important regulatory milestone for the MCB project,” said Celsius Executive Chair Atty. Julito R. Sarmiento in a Tuesday (April 8) press release.

"The acceptance of the Binding Term Sheet by the DENR and the (Mines and Geosciences Bureau) is not only a testament to (Makilala's) commitment to responsible and well-funded development, but also reflects the strong support and credibility provided by our partnership with Maharlika Investment Corporation," he added.

Following the approval of the term sheet, mine development and construction are slated to proceed.

“We remain steadfast in our commitment to sustainable development by balancing resource efficiency with environmental stewardship and social responsibility," Sarmiento added.

The company noted that it hopes to bring sustainable and economic benefits to host communities in Balatoc, the Municipality of Pasil and Kalinga province.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.