Celsius Resources completes tranche 2 placement to advance Philippine copper-gold projects

Celsius Resources Limited (ASX, AIM: CLA) has completed the second tranche of its previously announced placement, securing approximately AUD 1.75 million in gross proceeds. The funds were raised through the issuance of 227.92 million ordinary shares at AUD 0.008 per share to a mix of institutional, new, and existing investors. This placement, formally approved at the General Meeting on April 28, 2025, marks a crucial funding milestone for the company as it intensifies efforts to advance its copper-gold projects in the Philippines.

With the new shares now admitted for trading on AIM and the accompanying options due to be finalized by May 19, 2025, the company is poised to continue executing on its pre-development strategy. This funding event represents a significant step in Celsius Resources’ broader plan to progress its portfolio of critical mineral assets, including the Maalinao-Caigutan-Biyog (MCB), Sagay, and Botilao copper-gold projects.

What Was the Purpose of Celsius Resources’ Latest Capital Raise?

The primary aim of the placement was to fund pre-development activities at the flagship MCB copper-gold project in the Philippines, alongside ongoing advancement of the Sagay and Botilao projects. These assets form part of the company’s strategic position in the Philippine copper-gold sector, a region that continues to attract interest from global investors due to its geological potential and underexplored nature.

The company will also use the funds to cover corporate costs and general working capital needs. Celsius Resources has outlined that the new capital will ensure operational momentum as the projects move closer to permitting, resource expansion, and eventual feasibility assessments.

How Was the Placement Structured and Who Participated?

The tranche 2 placement involved the issuance of 227,917,252 fully paid ordinary shares at AUD 0.008 per share, generating gross proceeds of AUD 1.748 million. In addition to these shares, 26,875,000 options exercisable at AUD 0.01 with a three-year expiry will be issued on or around May 19, 2025, pending ASX quotation requirements.

Notably, participation came from both new and existing shareholders, along with institutional investors. Related parties also took part under the same terms, following shareholder approval. The shares rank pari passu with the company’s existing ordinary equity and are now officially quoted on both the ASX and AIM markets.

What Is the Broader Significance for Celsius Resources’ Project Pipeline?

The successful close of tranche 2 strengthens Celsius Resources’ ability to progress development work on its MCB project, a copper-gold asset of national significance within the Philippines. MCB remains the company’s flagship project, with a Scoping Study completed in early 2023 outlining a potential low-capex, high-grade underground mining operation with a 25-year life and early payback potential.

Additionally, the Sagay and Botilao projects—both situated within the Philippine Copperbelt—are positioned as high-upside assets where previous exploration has confirmed mineralisation zones, but further drilling and evaluation are needed to define resource estimates and economic viability.

Why Are the Options Attached to This Raise Important?

The tranche 2 placement was structured with a free-attaching option component, offering investors additional leverage. A total of 275 million options are being issued across both placement tranches, each exercisable at AUD 0.01 and expiring on 30 April 2028.

A further 68.75 million options will be allocated to the lead manager, PAC Partners Securities Pty Ltd, as part of a capital raising fee package—equivalent to 6% of placement proceeds and a placement option for every six shares subscribed.

This incentive structure is typical in small-cap mining finance deals, aimed at aligning stakeholder interests while offering speculative upside if Celsius shares appreciate over the medium term.

What Is the Current Sentiment Around Celsius Resources’ Stock?

Celsius Resources shares closed at AUD 0.007 on May 16, 2025, down 7.14% for the day, with a 52-week trading range between AUD 0.005 and AUD 0.016. With a market capitalization of just AUD 18.9 million and a year-on-year return of –35%, sentiment remains subdued in the near term despite the successful capital raise.

Trading volumes surged to 12.4 million shares on May 16, indicating heightened activity likely tied to the placement and associated liquidity events. CLA is ranked 536 of 1,047 sector-wise on the ASX and 1,519 overall out of 2,322 listed entities, reflecting its micro-cap status within the Basic Materials segment.

Market observers appear cautiously optimistic, particularly with the successful issue of options signalling deeper investor engagement. However, risk appetite remains tempered by broader concerns over capital markets volatility, metals price softness, and permitting timelines in the Philippines.

What Are Analysts Watching Going Forward?

Investors and analysts are likely to focus on several key near-term events. First is the finalisation and quotation of the tranche 2 options, scheduled for May 19, 2025. This will complete the AUD 3 million placement initiative launched in March 2025, offering clarity on capital structure and dilution.

Attention will also turn to operational milestones at the MCB project, including further permitting progress, updated resource models, and any indications of joint venture or offtake interest. Success here could significantly de-risk Celsius’ development pipeline and potentially improve market valuation.

Institutional participation and board support also point to internal confidence in the company’s execution roadmap, especially if future assays from Sagay or Botilao projects indicate substantial growth potential.

Outlook: Can Celsius Resources Capitalize on Its Project Momentum?

Celsius Resources’ completion of the tranche 2 placement provides both financial flexibility and a reaffirmation of investor interest at a critical juncture in its asset development strategy. While the stock’s current valuation and recent decline reflect market caution, the capital infusion positions the company to accelerate progress across its copper-gold portfolio in the Philippines.

If project execution remains steady and macro sentiment toward copper improves amid rising global electrification demand, Celsius could see a re-rating. The attached options, expiring in 2028, offer further upside potential for long-term holders aligned with the company’s strategic growth ambitions.