ASX-listed Celsius Resources has concluded a binding share sale agreement with Chinese State-owned mining, smelting and processing company Chinalco Mining for the sale of its 95% interest in the Opuwo cobalt/copper project, in Namibia, for $15-million.

For the year ended June 30, the Opuwo project recorded an operating loss of about N$421 738, which was carried at a value of about N$34-million in Celsius’ consolidated financial statements.

The divestment of the Opuwo project will enable Celsius to increase its focus on its Philippine portfolio of copper/gold projects and provide a material source of near-term funding.

As a demonstration of its commitment to the transaction and the Opuwo project and in support of the exclusive prospecting licence and the environmental clearance certificate renewal applications, Chinalco Mining has agreed to provide a nonrefundable exploration commitment of at least $750 000 on exploration and $250 000 on metallurgical testwork while conditions precedent are being satisfied.

Key conditions include shareholder approval from Celsius, approval by the Namibian Competition Commission and Bank of Namibia in relation to exchange controls, and a clearance by the Chinese National Development and Reform Commission, Ministry of Commerce and Bureau of Foreign Exchange Commission.

Other material provisions attributed with the agreement include a six-month cut-off date from the execution of the share sale agreement by December 29.

Should the agreement be terminated, Chinalco Mining will be restricted for three years from applying for, or acquiring any title, interest or licence within the Opuwo project area within 2 km of the project’s licence boundary.

"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,” says Celsius MD Bardin Davis.

A Chinalco Mining senior representative also highlights the strategic importance of the asset and expressed support for future development in Namibia.

“Opuwo is a significant greenfield cobalt/copper asset located in Namibia, demonstrating substantial exploration and development potential. We highly commend the efforts of Celsius Resources in advancing the Opuwo project and look forward to collaborating with all stakeholders to responsibly progress the project from exploration through to development," the Chinalco senior representative says.