Chinalco Mining to acquire 95% stake in Opuwo Project

Chinalco (Xiong'an) Mining, a subsidiary of the Aluminum Corporation of China, has agreed to get a 95% involvement successful the Opuwo Cobalt-Copper Project successful Namibia from Celsius Resources for $15m (101.88m yuan).

The transaction follows the execution of a binding stock merchantability statement betwixt the 2 parties.

The Opuwo Project successful the Kunene Region of north-western Namibia is an precocious cobalt-copper exploration and improvement venture.

It has a mineral assets estimation (MRE) of 225.5 cardinal 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 arsenic 45.3mt successful the indicated class and 180.2mt successful the inferred category.

The projected sale, via Celsius' subsidiary Opuwo Cobalt, includes some the intercompany indebtedness and Celsius' 95% involvement successful Opuwo Cobalt Holdings (Proprietary).

The divestment would let the institution to prioritise its copper-gold projects successful the Philippines and supply further funding.

Celsius added that, pending solution of an arbitration quality with respect to Makilala Mining Company, it intends to usage the proceeds to beforehand its MCB Copper-Gold Project.

Conditions for completion see support from Celsius shareholders; regulatory clearances successful Namibia and China; renewal of the exclusive prospecting licence and biology clearance certificate; and the waiver of pre-emptive rights by a number shareholder.

During this process, Chinalco (Xiong'an) Mining has agreed to walk astatine slightest $750,000 connected exploration and $250,000 connected metallurgical trial enactment to enactment licence renewal efforts.

The statement contains further provisions including a six-month cut-off for restitution of conditions and circumstantial restrictions should the woody beryllium terminated.

Minmetals Securities is serving arsenic fiscal advisor and Hamilton Locke arsenic ineligible advisor for Celsius.

Celsius managing manager Bardin Davis said: "Celsius is delighted to person concluded an statement with an entity of Chinalco (Xiong'an) Mining's planetary lasting and reputation.

"We judge that Chinalco (Xiong'an) Mining is good positioned to advancement the Opuwo Project, which volition present important benefits to Namibia and the section community."

"Chinalco Mining to get 95% involvement successful Opuwo Project" was primitively created and published by Mining Technology, a GlobalData owned brand.