The Maharlika Investment Corp. (MIC) has signed a binding term sheet to provide Makilala Mining Company Inc. a $76.4 million bridge loan facility to support early development works for the Maalinao-Caigutan-Biyog Copper-Gold Project (MCB Project) in Kalinga.
In a statement on Monday, MIC President and Chief Executive Officer Rafael D. Consing, Jr. emphasized the MCB Project aligns with the sovereign wealth fund’s mandate to drive economic growth and sustainable development.
“Our investment decision reflects a shared commitment to the sustainable, inclusive, and regenerative development of the MCB Project,” Consing said in the statement.
According to the MIC, the financing will support a range of initial development activities, including updating Makilala Mining’s feasibility study and front-end engineering design, building a main access road in collaboration with the Kalinga provincial government, and funding skills-based trainings for members of the Balatoc Indigenous Cultural Community.
The loan will also allow Makilala Mining to meet the financial capability requirements under its Mineral Production Sharing Agreement with the Philippine government.
Maharlika’s mining sector investment covers an Australian-Filipino mining company.
“This project sends a very strong signal to the world that the Philippines is open for business,” Hae Kyong Yu, Australian ambassador to the Philippines, said in the same statement.
“Australia is happy to partner with the Philippines in this important area, bringing our expertise in sustainable, community-based mining to support responsible and long-term growth,” Yu added.
Makilala Mining is an affiliate of Celsius Resources Limited, a listed company on both the Australian Securities Exchange and London Stock Exchange.
MIC said the loan will be disbursed in tranches, with an initial $10 million earmarked for immediate project commencement.
The agreement also includes provisions ensuring MIC’s oversight and participation in key project management decisions.
Just last month, MIC acquired a 20 percent stake in the National Grid Corporation of the Philippines held by the Synergy Grid and Development Philippines Inc.
Under the agreement, MIC will subscribe to preferred shares offered by Synergy Grid, which currently holds a 40.2 percent effective ownership interest in the company that operates the electricity grid across the country.
The agreement grants MIC two board seats each in Synergy Grid and National Grid.
