Kiri Industries Acquires 40% Makilala Stake for Copper Supply

Kiri Industries has announced that its wholly owned subsidiary, Equinaire Holdings Limited (EHL), was declared the successful bidder for a 40% stake in Makilala Mining Company, Inc. (MMCI) in the Philippines. The acquisition involved 20 million MMCI shares and was completed through a public auction on 8 September 2026. EHL agreed to pay USD 5.01 million, excluding applicable taxes and fees. The announcement was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements regulations.

The transaction gives Kiri Industries an upstream interest in a company developing a copper-gold project. Kiri said the stake is intended to support long-term copper concentrate requirements for a greenfield copper project being developed by its step-down subsidiary, Indo Asia Copper. MMCI has not yet begun mining operations and has generated no operational revenue.

Auction Result and Shareholding Acquired

EHL acquired 20,000,000 shares in MMCI, representing 40% of the mining company's outstanding capital stock. It was declared the successful bidder at the public auction conducted on 8 September 2026. The sale followed EHL's enforcement of security rights under an Omnibus Loan and Security Agreement, or OLSA.

Under a Deed of Absolute Sale executed on the same date, Makilala Holding Limited (MHL), acting through EHL as its appointed attorney-in-fact, sold and assigned the auction shares to EHL. The deed states that the shares, along with MHL's rights, title and interests in them, were transferred for USD 5.01 million.

How EHL Obtained the Security Rights

EHL's route to the auction began with an Assignment Agreement dated 22 April 2026, which became effective on 21 May 2026. Through that agreement, EHL acquired from Maharlika Investment Corporation all of MIC's rights, title and interests under the OLSA dated 16 May 2025.

The OLSA involved MIC, MMCI, Sodor, Inc., Celsius Resources, and MHL, together with underlying securities. Kiri stated that EHL enforced its security rights after events of default continued despite notices being issued to relevant parties in accordance with the agreement. The secured obligations remained outstanding, due and unpaid, leading to the foreclosure process and auction.

Makilala Mining's Copper-Gold Project

MMCI is developing the Maalinao-Caigutan Biyog, or MCB, copper-gold project. The project is located in Barangay Balatoc, Municipality of Pasil, Province of Kalinga in the Philippines. It is covered by Mineral Production Sharing Agreement No. 356-2024-CAR.

The mineral production sharing agreement has an initial term of 25 years and can be renewed for a further 25 years. This provides the project with a potentially long operating tenure, subject to the applicable terms and regulatory requirements. However, MMCI remains pre-revenue because mining operations have not commenced.

Deal Value and Key Facts

The consideration payable under the Deed of Absolute Sale is USD 5.01 million in cash. The disclosed amount does not include taxes and fees associated with the transaction. Kiri has described the acquisition as part of its strategy to secure a stable, long-term supply of copper concentrate.

Link to Indo Asia Copper Project

Kiri Industries said the acquisition supports the upcoming greenfield copper project of Indo Asia Copper, its step-down subsidiary. The company has positioned the MMCI investment as an upstream sourcing measure aimed at improving access to copper concentrate, a key raw material for copper-related operations.

The move also adds a mining-linked investment to Kiri's established business in dyes, dye intermediates and basic chemicals. The stated rationale is vertical integration across the copper value chain rather than an immediate contribution from mining operations. As MMCI has not commenced production, the acquisition does not bring operating mining revenue at the time of the announcement.

Completion Formalities Remain

While the deed was executed following the auction, the transaction is subject to standard Philippine tax clearances, corporate registrations and updates to the stock transfer book. The company indicated that these steps are expected to be completed within 15 to 25 working days.

These formalities relate to recording and completing the transfer of the acquired shares. The public auction and execution of the Deed of Absolute Sale establish the disclosed basis of EHL's acquisition, while the remaining procedures are administrative and regulatory in nature.

Market Relevance for Kiri Industries

The deal is material because it links Kiri Industries to a pre-operational copper-gold asset in the Philippines. The USD 5.01 million consideration secures a 40% interest rather than full ownership or operating control. Its economic relevance will therefore depend on the development of the MCB project and MMCI's eventual commencement of mining operations.

For investors, the acquisition creates exposure to the copper value chain alongside Kiri's existing chemicals-focused operations. The announcement does not disclose production timelines, project economics, copper resource estimates, funding plans or expected financial contribution from MMCI. Those details will be important for assessing the operational impact of the investment over time.

Why the Acquisition Matters

Copper concentrate supply is central to Kiri's stated plan for a greenfield copper project under Indo Asia Copper. By acquiring an interest in MMCI, EHL has obtained a position in a company holding rights connected with a long-tenure mining agreement. The transaction resulted from enforcement of contractual security rights, not a conventional negotiated purchase of a mining stake.

At the same time, the project remains at a development stage. MMCI has no operational revenue and no mining activity has begun, according to the disclosed information. The acquisition therefore represents a strategic upstream interest, with completion of transfer formalities expected within the stated 15 to 25 working-day period.

Conclusion

Kiri Industries, through EHL, has acquired 40% of Makilala Mining for USD 5.01 million through a public auction following enforcement of security rights. The stake is tied to Kiri's objective of securing long-term copper concentrate access for Indo Asia Copper's greenfield project. The next disclosed steps are Philippine tax clearances, corporate registrations and stock transfer book updates.