Sails up for Celsius after securing funding deal with Hong Kong’s Patras

CLA secures $1.5m placement and up to A$10m equity facility from Patras
Patras is a Hong Kong based investment company
CLA says the deal provides funding envelope for next two years

Special Report: Celsius Resources has entered binding financing agreements with Patras Capital for a $1.5m placement and up to $10m committed equity facility.

Patras is a Hong Kong based investment company with a strong track record of supporting companies in growth sectors, including mining, energy and technology.

Celsius Resources (ASX:CLA) is aiming to develop its flagship Maalinao-Caigutan-Biyog (MCB) copper-gold project in the Philippines and has completed all material permitting stages for the project and is well advanced in finalising project funding.

CLA also recently received a crucial Certificate Precondition at MCB.

This financing with Patras consists of a $1.5m share placement at A$0.0125 per share.

The proposal will equip it with the funds needed to advance its project portfolio, including the Sagay and Botilao projects, and support corporate functions.

Plus, Celsius has the option to draw from a committed equity facility of up to A$10m through placement tranches of shares in the company over the next 24 months, if required.

Two-year funding envelope

This facility provides a funding envelope for the next two years from which Celsius will continue to work on attracting high quality equity partners to advance other highly prospective projects.

Together, these agreements are intended to provide the company with the key benefits of ongoing access to funding, which allow Celsius to secure both immediate and medium-term funding for future development expenditure on the Sagay and Botilao projects in the Philippines, along with other exploration targets in the Philippines.

It also conditionally allows the company to source funds, rather than seek funding in the future via other more traditional forms of equity financing (often that require unattractive discounted pricing with dilutive attached options).

“As part of our ongoing commitment to delivering value for our shareholders, the funds raised will be strategically deployed to advance key milestones in CLA’s Philippine assets/projects,” CLA executive Mark Kerkwijk said.

“This will enhance our operational capabilities and strengthen our long-term sustainability.

“We remain focused on generating strong returns, fostering innovation, and managing our resources responsibly to ensure continued success.”

Celsius may draw in tranches of up to $500,000 at its full discretion, and up to $3 million with mutual consent, which may be further increased by up to 15% by Patras.

The MCB project is one of the largest undeveloped copper assets held by an ASX-listed company, with almost 1.6Mt of copper metal and 1.34Moz of gold in the ground.

Its 338Mt resource includes a high-grade core of 93.7Mt, mostly indicated, at 0.8% copper and 0.28g/t gold for 746,000t copper metal and 831,000oz gold.

This article was developed in collaboration with Celsius Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.