Maharlika Investment Corporation (MIC), which manages the Philippines’ sovereign wealth fund, is set to provide a bridge loan facility worth $76.4 million to Makilala Mining Co. Inc. (MMCI), the Philippine affiliate of Australia-based Celsius Resources Ltd.

In a disclosure to the Australian Securities Exchange (ASX) on Monday, Feb. 24, Celsius announced that the MIC and MMCI had inked a binding term sheet to fully finance the latter’s feasibility study and front-end engineering design (FEED) of its flagship project.

The Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in the Cordillera Administrative Region (CAR) is the primary project in MMCI’s portfolio.

According to its website, the project site is located within Batong Buhay, the ancestral domain of the Balatoc Tribe. It is approximately 43 aerial kilometers (km) west-southwest of Tabuk City, the capital of Kalinga, and 320 km north of Manila.

Initially granted an exploration permit in 2006, MMCI was granted last year with a 25-year mineral production sharing agreement (MPSA) for the site by the Department of Environment and Natural Resources (DENR).

The permit grants the mining company exclusive rights to explore, develop, and commercially produce copper and associated minerals within a designated 2,500-hectare contract area.

“The [MIC’s] decision to invest in the MCB project underscores the Philippine government’s strong commitment to advancing the critical metals sector and fostering a responsible mining industry that delivers meaningful benefits to host communities,” said Celsius Executive Chairman Julito Sarmiento.

“In return, we pledge to fulfill our role as responsible stewards, ensuring the MCB project’s success while upholding environmental and social responsibilities,” he emphasized.

Currently, MMCI is in the process of selecting a suitable engineering company to oversee its feasibility study and FEED.

The bridge loan facility will be covered by two omnibus loans and security agreements (OLSAs).

While the OLSAs are not yet finalized, the first will be available nine months from signing, and the second subject to the completion of the feasibility study and FEED, or up to 24 months from signing.

Based on the principal terms and conditions, any undrawn amounts after the availability periods shall be automatically cancelled.

It will have a 12.5 percent fixed interest rate compounded quarterly, which is added to the principal amount and payable on its maturity date.

Also embodied in the agreement is the MIC having granted the right of first offer on any sale or transfer of MMCI’s assets and/or sales.

The mining company, for three years from inking a deal with the MIC, cannot sell or transfer its assets or shares without the MIC’s prior written consent.

Notably, during the term of the bridge loans, the parties shall negotiate the equity sale of MMCI’s shares to the MIC.

“Our investment decision reflects a shared commitment to the sustainable, inclusive, and regenerative development of the MCB project,” said MIC Chief Executive Officer Rafael Consing Jr.

“We envision the MCB project as a benchmark for the Philippine government’s call for ‘beyond responsible mining,’ setting a new standard for resource development in the Philippines,” he added.

The MIC’s forthcoming loans into MMCI comes after its maiden investment in the National Grid Corporation of the Philippines (NGCP).

Last month, the MIC acquired a 20 percent stake in NGCP, the private operator of the country’s power grid.