Why Celsius Sold Its Namibia Cobalt Project to Chinalco

Celsius Resources (ASX:CLA) signed a binding agreement to sell its 95% interest in the Opuwo cobalt-copper project in Namibia to Chinalco Mining Corp for US$15 million (A$21.7 million). The deal covers Celsius' stake in Opuwo Cobalt Holdings and an intercompany loan. Proceeds will partly fund an ongoing arbitration dispute in the Philippines.

The Australian explorer is shifting focus to its copper-gold portfolio in the Philippines. Managing director Bardin Davis said the company is "delighted to have concluded an agreement with an entity of Chinalco's international standing." He added that Chinalco is well positioned to develop Opuwo, which will benefit Namibia and the local community.

Part of the sale proceeds will go toward settling the MMCI arbitration. Celsius' Philippine subsidiary Makilala Inc. is entangled in a dispute over ownership claims and offtake injunctions.

The sale requires several approvals before closing. Namibia's Competition Commission and the Bank of Namibia must sign off. Chinese authorities also need to clear the deal. Celsius must also secure a waiver of pre-emptive rights from the minority shareholder holding the remaining 5% in the project.

Celsius will call a shareholder meeting for approval "in due course." Shares closed Monday at 0.5 Australian cents per share.

Chinalco Mining representatives wrote that they commend Celsius for its work on the Opuwo project before the sale.

The transaction is scheduled to close in calendar year 2027, the company said in its announcement.