CHAMWE KAIRA
Celsius Resources, the Australian listed company, has said the Opuwo Cobalt Project in the north of the country is in early-stage discussions regarding a potential transaction with a strategic partner concerning the disposal of the company’s 95% interest in the Opuwo Project.
The company said in a report for the period ended 31 March that it has agreed to the terms of a non-binding agreement with Stewardship Investments (Pty) Ltd concerning the disposal of the company’s 95% interest in the Opuwo Project.
The company reiterated that no binding agreement has been reached, and although discussions are continuing, there can be no certainty that any binding agreement will be reached or the timing of any such agreement.
Celsius Resources has a 95% interest in the highly prospective Opuwo Cobalt Project in northern Namibia. The project is the largest cobalt deposit outside the DRC. It has ample access to grid power, water, and services, allowing a range of development options.
The updated indicated and inferred mineral resource at Opuwo doubles to 225.5 million tonnes, grading 0.12% cobalt, 0.43% copper and 0.54% zinc.
The company has said 259 000 tonnes of contained cobalt demonstrates potential for Opuwo to be a significant future supplier of cobalt into the battery market.
Furthermore, 970 000 tonnes of contained copper are anticipated to enhance the viability of the project given current and forecast copper prices.
Celsius Resources has stated that along with copper, cobalt is a key element in the production of lithium-ion batteries used in electric vehicles and home battery storage.
A Bloomberg New Energy Finance study expects electronic vehicles to hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040.
The electrification of transport is now one of the major trends of the 21st century and seen by scientists and governments as the key to reducing carbon in the atmosphere.
Its ability to stand up to high temperatures also makes cobalt a highly suitable element for developing superalloys such as those used in jet turbine engines.
In terms of the development pathway, the company has said it is assessing ways to improve project viability given recent increases in cobalt and copper prices.
The company is awaiting the Ministry of Environment and Tourism feedback on the EIA Scoping Report submitted.
During the quarter, the company secured firm commitments for $A3.3 million through a strongly supported placement from new and existing shareholders and institutional investors.
