Celsius Signs US$15 Million Deal for Opuwo Cobalt-Copper Project Sale
Celsius Resources has struck a binding deal to offload its 95% stake in the Opuwo cobalt-copper project in Namibia to Chinalco (Xiong’an) Mining for US$15 million, freeing capital to focus on its Philippine copper-gold assets amid ongoing arbitration.
- Sale of 95% interest in Opuwo Project for US$15 million
- Opuwo holds 225.5Mt with significant cobalt and copper resources
- Proceeds to support development of MCB Copper-Gold Project
- Transaction contingent on shareholder approval and regulatory clearances
- Chinalco commits US$1 million exploration spend during conditions period
Celsius Divests Opuwo Project to Focus on Philippine Assets
Celsius Resources Limited (ASX:CLA) has agreed to sell its 95% interest in the Opuwo Cobalt-Copper Project in Namibia to Chinalco (Xiong’an) Mining Corporation Limited for US$15 million (approximately A$21.7 million). The deal marks a strategic pivot for Celsius, allowing it to concentrate resources on its copper-gold portfolio in the Philippines, particularly the MCB Copper-Gold Project, which is currently embroiled in arbitration proceedings.
Significant Mineral Resource with Operational Losses
The Opuwo Project, located in Namibia's Kunene Region, boasts a substantial Mineral Resource Estimate of 225.5 million tonnes grading 0.12% cobalt, 0.43% copper, and 0.54% zinc. This translates to contained metals of 259,000 tonnes of cobalt and 970,000 tonnes of copper, divided into 45.3 million tonnes in the Indicated category and 180.2 million tonnes Inferred. Despite its scale, the project recorded an operational loss of approximately A$37,157 for the year ended 30 June 2025 and was carried at a value of around A$3 million in Celsius’s accounts.
Conditions and Commitments Underpinning the Sale
The transaction, executed through Celsius’s subsidiary Opuwo Cobalt Pty Ltd, is subject to multiple conditions including Celsius shareholder approval, renewal of the Exclusive Prospecting Licence (EPL) and Environmental Clearance Certificate (ECC), regulatory approvals from Namibian authorities and Chinese bodies such as the National Development and Reform Commission, and no material adverse effect. Notably, Chinalco (Xiong’an) Mining has pledged a non-refundable exploration commitment of at least US$750,000 on exploration and US$250,000 on metallurgical test work during the conditions period, aimed at supporting EPL and ECC renewals.
Strategic Implications Amid Arbitration Dispute
Celsius’s Managing Director Bardin Davis emphasised the significance of partnering with a reputable entity like Chinalco to advance the Opuwo Project, which promises benefits to Namibia and local communities. However, Celsius’s ability to deploy the sale proceeds hinges on resolving its ongoing arbitration dispute with Makilala Mining Company, Inc (MMCI) in the Philippines. The company intends to channel the funds into progressing the MCB Copper-Gold Project once the arbitration is settled, reflecting a clear shift in strategic focus.
Transaction Safeguards and Future Restrictions
The Share Sale Agreement includes safeguards such as a six-month cut-off date from execution, extendable by two months, and a three-year restriction preventing Chinalco from acquiring interests within the Opuwo area if the deal falls through. Celsius also guarantees performance obligations under the agreement, while the minority 5% shareholder’s pre-emptive rights must be waived. Legal and financial advisers Minmetals Securities and Hamilton Locke are guiding Celsius through the process.
Bottom Line?
Celsius’s sale of Opuwo frees capital for its Philippine ambitions, but the outcome depends on arbitration resolution and regulatory hurdles.
Questions in the middle?
- Will Celsius resolve its Makilala Mining arbitration in time to deploy sale proceeds effectively?
- How will Chinalco’s exploration commitment influence Opuwo’s licence renewals and project advancement?
- Could the divestment reshape Celsius’s strategic positioning in the competitive copper and cobalt sectors?
