The dispute comes as the government seeks to strengthen the country’s critical-minerals industry under Executive Order 122, which aims to promote responsible investment, competitiveness and value-added mineral processing.
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Possible violations of Philippine law have been referred to the National Bureau of Investigation (NBI) in connection with a dispute involving the MCB Copper-Gold Project in Kalinga.
The Philippine Securities and Exchange Commission (SEC) disclosed the referral in a 1 September letter to a shareholder of Celsius Resources Limited.
The referral includes an investigation into possible violations of the Anti-Dummy Law and other matters involving transactions, corporate arrangements, and the identities of individuals and entities concerned.
The SEC also acknowledged concerns involving foreign-investment protection, corporate integrity and the rule of law. However, the referral does not establish that an offense has occurred, with the matter subject to appropriate investigative and legal processes.
The dispute intensified after Equinaire Holdings Limited moved to foreclose on Makilala Holding Limited’s (MHL) 40 percent interest in Makilala Mining Company Inc. (MMCI), which holds the MCB Project.
Equinaire, a wholly owned subsidiary of India-listed Kiri Industries Limited, submitted a $5.01-million credit bid at the 8 September auction after no competing bid was made. It was declared the winning bidder, according to a 9 September market announcement by Celsius.
The foreclosure is the latest development in a series of corporate, financing and legal disputes involving Celsius, MHL, Sodor Inc., Sarge Sarmiento, Equinaire, Kiri Industries and SL Law.
The original dispute centers on the shareholding, governance and control of MMCI. Celsius and MHL are contesting arrangements involving Sodor and PMR Holding Corp., including MHL’s Notice of Relinquishment requiring Sodor to return its MMCI shares.
Equinaire entered the dispute after acquiring rights to a $10-million secured loan originally provided to MMCI by Maharlika Investment Corporation. The assignment included securities tied to the loan, including MHL’s 40 percent MMCI interest.
Equinaire later cited MHL’s Notice of Relinquishment to Sodor as an alleged Event of Default under the loan agreement and relied on it in pursuing foreclosure.
Celsius disputes that a valid and continuing Event of Default occurred and challenges Equinaire’s entitlement to foreclose. MHL attended the auction and maintained that its outcome remains subject to pending arbitration.
While Equinaire’s winning bid establishes the auction result, it does not finally determine its legal entitlement to the shares.
The dispute comes as the government seeks to strengthen the country’s critical-minerals industry under Executive Order 122, which aims to promote responsible investment, competitiveness and value-added mineral processing.
