Further MMCI OLSA update
Celsius Resources Limited is providing an update on the Omnibus Loan and Security Agreement (OLSA) involving Makilala Mining Company Inc. (MMCI) and Equinaire Holdings Limited. Equinaire issued notices of default, foreclosure, and disposition concerning Celsius' 40% interest in MMCI, but a Temporary Order of Protection (TOP) granted by the Regional Trial Court of Makati City currently prevents these actions. Celsius disputes the default and Equinaire's capacity to proceed, intending to initiate arbitration. Equinaire has applied to lift the TOP, but the court has ordered parties to maintain the status quo until a decision is made.
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Further to recent announcements, Celsius Resources Limited ("Celsius" or the "Company") (+ASX, AIM: CLA) wishes to provide a further update in relation to the Omnibus Loan and Security Agreement ("OLSA") between Makilala Mining Company Inc. ("MMCI") and Equinaire Holdings Limited ("Equinaire").[1]
As previously announced, following the purported assignment of the OLSA from Maharlika Investment Corporation ("MIC") to Equinaire (a wholly owned subsidiary of Kiri Industries Limited of India), Equinaire issued the following notices:
- Notice of Commencement of Foreclosure Proceedings - which on the basis of Equinaire's claimed Event of Default, is seeking to initiate a foreclosure process and the enforcement of security with respect to Celsius' 40% interest in MMCI; and
- Notice of Disposition - which is seeking to initiate a public auction for Celsius' 40% interest in MMCI.[2]
Further to the issuance of the notices, a Temporary Order of Protection ("TOP") was granted by the Regional Trial Court of Makati City, preventing Equinaire from proceeding with foreclosure or the disposition and auction of Celsius' interest in MMCI.
Celsius refutes the occurrence and continuance of an Event of Default and the capacity of Equinaire to initiate a foreclosure process and sell its interest in MMCI. Ahead of the expiry of the TOP on 25 August 2026, Celsius intends to initiate arbitration to protect its interests in accordance with the provisions of the OLSA.
Equinaire has subsequently applied to the Regional Trial Court to lift the TOP to enable it to proceed with an auction and sale of Celsius' interest in MMCI. Celsius has submitted a filing and presented verbal arguments to the Regional Court outlining its opposition to the lifting of the TOP. The matter is still being assessed by the Regional Trial Court. In the interim, the Regional Trial Court has directed the parties to maintain the status quo until Equinaire's Motion to Lift TOP is resolved.
Celsius will provide further updates as and when appropriate in accordance with its continuous
disclosure obligations.
596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018.
This announcement has been authorised by the Board of Directors of Celsius Resources Limited.
Celsius Resources Limited
| Bardin Davis - Managing Director | E: info@celsiusresources.com.au W: www.celsiusresources.com |
| Purple Communications Pty Ltd Andrew Edge | P: +61 410 276 744 E: aedge@purple.au |
| Zeus Capital Limited Nominated Adviser - James Joyce / James Bavister Broking - Harry Ansell | P: +44 (0) 20 3 829 5000 |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.