Celsius Resources has agreed to sell its 95% stake in the Opuwo Cobalt-Copper Project in Namibia to Chinalco Mining, a subsidiary of Aluminium Corporation of China, for US$15 million.
Opuwo is a large, advanced exploration project in Namibia’s Kunene Region, with a resource of 225.5 million tonnes grading 0.12% cobalt, 0.43% copper and 0.54% zinc, containing 259,000 tonnes of cobalt and 970,000 tonnes of copper.
Despite its scale, the project was only carried at around A$3 million on Celsius’s books and made an operational loss of roughly A$37,000 last year.
The sale lets Celsius redirect its attention and cash towards its Philippine copper-gold portfolio, particularly the MCB Copper-Gold Project, once the company resolves its ongoing arbitration dispute with Makilala Mining Company.
Celsius Managing Director, Bardin Davis, said: “Celsius is delighted to have concluded an agreement with an entity of Chinalco (Xiong’an) Mining’s international standing and reputation.
“We believe that Chinalco (Xiong’an) Mining is well positioned to progress the Opuwo Project, which will deliver substantial benefits to Namibia and the local community. Subject to the conclusion of our MMCI arbitration proceedings, we intend to deploy transaction proceeds to support the development of the MCB Copper-Gold Project.”