Celsius Resources (AIM:CLA), the ASX and AIM-listed copper-gold developer, has agreed to sell its Opuwo cobalt-copper project in Namibia to Chinalco (Xiong'an) Mining for total consideration of US$15 million (approximately A$21.7 million).
The deal, structured as a sale of an intercompany loan and Celsius's 95% interest in Opuwo Cobalt Holdings via wholly owned subsidiary Opuwo Cobalt Pty, values an asset carried at approximately A$3 million in Celsius's consolidated accounts at a substantial premium to book.
The Opuwo project holds a mineral resource of 225.5 million tonnes at grades of 0.12% cobalt, 0.43% copper and 0.54% zinc, representing 259,000 tonnes of contained cobalt and 970,000 tonnes of contained copper across the Kunene Region of north-western Namibia.
Celsius intends to direct the net proceeds toward advancing its MCB copper-gold project in the Philippines, subject to resolving an ongoing arbitration dispute with Makilala Mining Company.
"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," said Managing Director Bardin Davis.
Chinalco (Xiong'an) Mining, a non-ferrous subsidiary of Chinalco focused on large-scale international base metals projects, has committed a non-refundable US$1 million toward exploration and metallurgical test work while conditions precedent are satisfied.
Completion requires regulatory clearances in Namibia and China, including renewal of the exclusive prospecting licence, and carries a cut-off date of 29 December.
