Celsius Resources has agreed on the terms of a non-binding agreement with Stewardship Investments concerning the disposal of its 95% stake in the Opuwo Cobalt Project.
The Opuwo Cobalt-Copper Project is held under Celsius Resources’ Namibian subsidiary, Opuwo Cobalt Holdings Ltd.
The company first announced that it sought a strategic partner in March 2024, and in the April 2024 activities report, Celsius Resources said it was in early-stage discussions regarding a potential transaction with a strategic partner(s).
In its latest quarter report, Celsius says although it has agreed on the terms, no binding agreement has been reached, and there can be no certainty that any binding agreement will be reached or the timing of any such
agreement.
Celsius Resources had previously indicated that a binding agreement would be executed before
October 31, 2024.
The company acquired the initial 30% interest in the Opuwo Cobalt Project in August 2017, while the joint venture between Gazania Investments 196 (Pty) Ltd and Amor Investments (Pty) Ltd had 70%.
In September 2017, Celsius Resources agreed with Gecko Namibia to acquire an additional 20% interest in the project for about A$1.3 million before completing a bankable feasibility study.
In 2019, Celsius Resources acquired an option to earn up to 76% of the Opuwo Cobalt Project through a 100% takeover of Opuwo Cobalt Pty Ltd, which holds the right to the Opuwo Cobalt Project under EPL 4346.
Opuwo Cobalt held 30% of the issued share capital in Gecko Cobalt Holdings, the Namibian joint venture entity with the ultimate title to EPL 4346.
Gecko also disposed of 95% interest in three other licenses, covering 782 square kilometres, in the Opuwo region in exchange for 12,5 million Celsius Resources shares.
This move expanded the Opuwo project landholding to about 1,470 square kilometres.
The Namibian Former Robin Island Political Prisoners Trust owns the remaining 5%.
The Opuwo deposit is a mineralised body with a minimum strike length of 25 km, of which only 13 km have been drilled.
About 95% of the mineral resource comprises fresh sulphide ore, with over 80% in an indicated category based on the JORC resource estimate.
Mineralised zones are open in all directions and have an excellent scope for expansion with further drilling.
The Opuwo Cobalt project has an updated indicated and inferred mineral resource of 225.5 million tons, grading 0.12% cobalt, 0.43% copper, and 0.54% zinc.
Two hundred fifty-nine thousand tons of cobalt contain the potential for Opuwo to be a significant future supplier of cobalt in the battery market.
