Celsius Resources Limited is embroiled in legal disputes involving its 40% stake in Makilala Mining Company Inc. (MMCI), a Philippine mining firm. The conflicts center on two separate cases filed by creditors Equinaire Holdings Limited and Sodor, Inc., each pursuing enforcement actions through local courts.
Equinaire initiated proceedings in March 2023 under an Omni Loan and Security Agreement, alleging default events and seeking to auction MMCI shares held by Makilala Holding Limited (MHL). The Regional Trial Court of Makati initially granted a Temporary Protection Order on August 12, but this was revoked after Equinaire posted a PHP 201 million (US$ 4.6 million) counter-bond. Celsius has contested the defaults and Equinaire’s authority to execute the auction, which is scheduled for September 8, 2026. The court’s decision did not address the substantive contract rights or the validity of the alleged defaults.
In a separate dispute, Sodor filed a consignation petition with the Regional Trial Court of Bataan in February 2026, seeking to force MHL to accept a PHP 300 million (US$ 6.8 million) payment for a 60% stake in MMCI. The payment was due after an extended deadline under a March 2023 agreement expired. The Bataan court dismissed MHL’s request to suspend proceedings pending arbitration, prompting MHL to file a Motion for Reconsideration. A further appeal is planned if the motion is denied.
The public auction of MHL’s 40% stake in MMCI will proceed with a minimum bid of US$ 5 million and no warranties, described in court filings as sold "as is, where is." Celsius Resources’ shares closed at A$0.004 on August 31, down 20% from the prior session, reflecting investor concern over the disputes.
The conflicting legal actions underscore the complexity of enforcing contractual obligations in the Philippine mining sector, where disputes over asset control and payment terms can lead to prolonged court battles.
