Australian-listed Celsius Resources Ltd. has filed a disbarment complaint against its former executive chairman Julito “Sarge” Sarmiento and five other lawyers from Sarmiento Loriega Law over alleged ethical violations stemming from a dispute over a Philippine copper-gold project.
The complaint, filed on Monday, Aug. 24, also named SL Law founding and co-managing partner Maria Elizabeth “Beth” Peralta-Loriega, senior partners Recolito Ferdinand “Ricky” Cantre Jr., Jose Linsangan and Bryan San Juan, and partner Christine Clemente.
Several junior associates of the firm were also named in the disciplinary proceedings, according to Celsius.
The filing follows a separate criminal complaint lodged with the Department of Justice against Sarmiento over an alleged violation of the Anti-Dummy Law, which restricts foreign participation in certain Philippine businesses.
That complaint centers on a Jan. 17 email that Celsius alleges Sarmiento sent to executives of India-based Kiri Industries Ltd. and a director of Makilala Mining Company Inc., or MMCI.
Celsius said the email outlined a proposed ownership structure under which Filipino shareholders, including SL Law partners, would hold the required Philippine equity while foreign investors retained control through deeds of trust and undated deeds of assignment.
The dispute involves MMCI, developer of the Maalinao-Caigutan-Biyog copper-gold project in Pasil, Kalinga. Celsius holds a 40% stake in MMCI, which operates the project under a Mineral Production Sharing Agreement with the Philippine government.
Celsius has raised concerns over Sarmiento’s multiple roles involving MMCI. He served as Celsius’ executive chairman and was also chair and president of MMCI, while remaining a founding and co-managing partner of SL Law, which previously acted as MMCI’s principal Philippine legal adviser.
The company has also disputed a 3% finder’s fee claimed by SL Law in connection with an MMCI financing agreement and questioned the disclosure of Sarmiento’s interests and roles in transactions involving the company.
The complaints have not been adjudicated.
