Chinalco (Xiong’an) Mining, a subsidiary of the Aluminum Corporation of China, has agreed to acquire a 95% stake in the Opuwo Cobalt-Copper Project in Namibia from Celsius Resources for $15m (101.88m yuan).
The transaction follows the execution of a binding share sale agreement between the two parties.
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The Opuwo Project in the Kunene Region of north-western Namibia is an advanced cobalt-copper exploration and development venture.
It has a mineral resource estimate (MRE) of 225.5 million tonnes (mt), with grades of 0.12% cobalt, 0.43% copper and 0.54% zinc.
According to Celsius, this represents 259,000t of contained cobalt and 970,000t of contained copper, categorised as 45.3mt in the indicated category and 180.2mt in the inferred category.
The proposed sale, via Celsius’ subsidiary Opuwo Cobalt, includes both the intercompany loan and Celsius’ 95% stake in Opuwo Cobalt Holdings (Proprietary).
The divestment would allow the company to prioritise its copper-gold projects in the Philippines and provide additional funding.
Celsius added that, pending resolution of an arbitration dispute with respect to Makilala Mining Company, it intends to use the proceeds to advance its MCB Copper-Gold Project.
Conditions for completion include approval from Celsius shareholders; regulatory clearances in Namibia and China; renewal of the exclusive prospecting licence and environmental clearance certificate; and the waiver of pre-emptive rights by a minority shareholder.
During this process, Chinalco (Xiong’an) Mining has agreed to spend at least $750,000 on exploration and $250,000 on metallurgical test work to support licence renewal efforts.
The agreement contains further provisions including a six-month cut-off for satisfaction of conditions and specific restrictions should the deal be terminated.
Minmetals Securities is serving as financial adviser and Hamilton Locke as legal adviser for Celsius.
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.”
