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Celsius Resources (ASX:CLA) has this morning executed a binding sales agreement to sell its 95% interest in the Opuwo cobalt-copper project in Namibia to Chinalco Mining Corp for US$15 million (A$21.7 million). The CY27 sale includes an intercompany loan and Celsius’ interest in Opuwo Cobalt Holdings as well.
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The Australian explorer decided to sell the Namibian project to “increase its focus” on its portfolio of copper-gold projects over in the Philippines.
“Celsius is delighted to have concluded an agreement with an entity of Chinalco (Xiong’an) Mining’s international standing and reputation,” the company’s managing director, Bardin Davis, told shareholders on Tuesday.
“We believe Chinalco is well-positioned to progress Opuwo, 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.”
At least some of the funding will go towards untangling an active arbitration dispute involving its Philippine subsidiary, Makilala Inc. That dispute revolves around ownership claims and offtake injunctions.
Chinalco Mining’s representatives today wrote that they highly commend Celsius for working on the Opuwo project before this sale.
Celsius will host a shareholder meeting for approval “in due course.”
Several regulatory hurdles will also need to be cleared before the sale goes through, including a tick from Namibia’s Competition Commission and Bank of Namibia, as well as clearance from Chinese authorities. There will also need to be a waiver of pre-emptive rights from the 5% minority shareholder.
CLA closed on Monday afternoon at 0.5cps.
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