Celsius Resources (ASX:CLA) has planned to divest its Opuwo Cobalt-Copper Project in Namibia to Chinalco (Xiong’an) Mining Corporation for US$15 million ($21.8 million).
The transaction involves the sale of an intercompany loan and Celsius’ 95% interest in Opuwo Cobalt Holdings through its wholly owned subsidiary Opuwo Cobalt Pty Ltd.
The US$15 million ($21.8 million) consideration represents a significant premium to the project’s $3 million carrying value.
The Opuwo Project hosts a mineral resource estimate of 225.5 million tonnes @ 0.12% cobalt, 0.43% copper, and 0.54% zinc, containing 259,000 tonnes of cobalt and 970,000 tonnes of copper.
Celsius Resources Managing Director Bardin Davis says the divestment enables Celsius to increase focus on its Philippine copper-gold portfolio while providing material near-term funding.
“Celsius is delighted to have concluded an agreement with an entity of Chinalco (Xiong’an) Mining’s international standing and reputation,” Davis says.
The transaction requires several conditions precedent, including Celsius shareholder approval, renewal of the Exclusive Prospecting Licence and Environmental Clearance Certificate, and approvals from Namibian and Chinese regulatory authorities.
Chinalco (Xiong’an) Mining has agreed to provide a non-refundable exploration commitment of US$750,000 for exploration and US$250,000 for metallurgical testwork, subject to the conditions precedent being satisfied.
The agreement includes a six-month cutoff date from execution, with a potential two-month extension. If terminated, Chinalco faces a three-year restriction from acquiring interests within the Opuwo Project area and two kilometres of its boundary.
Write to JC Villarba at Mining.com.au
Images: Celsius Resources
