Shares of Celsius Resources Ltd. soared by 78% to 0.008p following a major deal that could reshape the company’s future. The Australian and London-listed explorer agreed to sell its Namibian cobalt-copper project, known as the Opuwo project, to a subsidiary of the Chinese giant Chinalco for $15 million.
This project, located in north-western Namibia, holds significant value with estimated reserves of 259,000 tonnes of cobalt and 970,000 tonnes of copper. Celsius owns 95% of this advanced exploration asset, which was recorded at a carrying value of just A$3 million in the company’s accounts, making the sale price a substantial gain.
The deal is more than just a sale; it’s a strategic move that will allow Celsius to focus on its copper-gold projects in the Philippines. The company also plans to use the proceeds to advance its MCB copper-gold project, although this is subject to resolving an arbitration dispute. To ensure progress during the approval period, Chinalco committed to investing at least $750,000 in exploration and $250,000 in metallurgical testing.
Managing director Bardin Davis expressed satisfaction at partnering with a buyer of Chinalco’s international stature, highlighting the significance of this agreement. Pending shareholder, regulatory, and government approvals, this deal marks an exciting new chapter for Celsius Resources Ltd.