Celsius Resources updates market on US$5M dispute
Key points
- Equinaire Holdings acquired a 40% stake in Makilala Mining Company Inc. via a US$5,010,000 credit bid.
- Shares in Celsius Resources remained unchanged at $0.004 following the update.
- Celsius Resources continues to refute default claims and maintains that the foreclosure remains subject to ongoing legal resolution.
Celsius Resources (ASX:CLA) announced that Equinaire Holdings won a public auction for a 40% stake in Makilala Mining Company Inc. with a US$5,010,000 credit bid.
The transaction follows a June debt assignment by Maharlika Investment Corporation and subsequent default notices issued against a Celsius subsidiary.
Celsius stated that the claimed events of default should be referred to arbitration in accordance with the dispute resolution clauses within the agreement.
The Philippine Bureau of Internal Revenue recently issued tax clearance certificates for the share transfer, though the tax authority noted it is not adjudicating the underlying civil rights dispute between the parties.
Celsius plans to continue pursuing legal remedies to protect its interest in the underlying mining assets.
Following the announcement, the Celsius Resources share price was unchanged at $0.004.
The company is currently progressing exploration and development activities across its portfolio of mineral assets in the Philippines.
Makilala Mining Company Inc. holds key interests in copper-gold exploration projects, which form a significant part of the company's long-term asset strategy.
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