Chamwe Kaira
Celsius Resources has continued its divestment process for the Opuwo Cobalt project in Namibia, with several interested parties conducting due diligence.
The company said in its quarterly report for the period ended 30 September that the project’s exploration licence renewal is still under review by the Ministry of Industries, Mines and Energy.
Celsius ended the quarter with about N$29 million (A$2.39 million) in cash, including around N$18 million (A$1.49 million) held by MMCI. It spent about N$53 million (A$4.37 million) on exploration and evaluation during the quarter, while payments to related parties totalled roughly N$6.6 million (A$537 000), covering directors’ fees, management costs, and legal services.
The Australian-listed company has previously said it is in early-stage discussions with a strategic partner on a potential transaction to dispose of its 95% interest in the Opuwo project.
Celsius said it has agreed to the terms of a non-binding agreement with Stewardship Investments (Pty) Ltd for the proposed disposal.
Celsius Resources holds a 95% interest in the Opuwo Cobalt Project, which it describes as the largest cobalt deposit outside the Democratic Republic of Congo. The project has access to grid power, water, and other infrastructure, allowing several development options.
The company reported an indicated and inferred mineral resource of 225.5 million tonnes, grading 0.12% cobalt, 0.43% copper, and 0.54% zinc. It said the deposit contains 259,000 tonnes of cobalt and 970,000 tonnes of copper, supporting its potential as a future supplier to the global battery market.
Celsius said cobalt, along with copper, plays a key role in producing lithium-ion batteries used in electric vehicles and home storage systems. The metal’s ability to withstand high temperatures also makes it suitable for superalloys used in jet turbine engines.
The company added that it is assessing ways to improve the project’s viability following recent increases in cobalt and copper prices.
Caption
Celsius Resources is pulling out of the Opuwo Cobalt project.
- Photo: Celsius Resources.
