Celsius Resources has announced early-stage discussions with potential strategic partners to divest its 95% stake in the Opuwo Cobalt-Copper Project, Africa’s largest cobalt deposit outside of the Democratic Republic of Congo. The project, located in Namibia, is managed by Celsius’s subsidiary, Opuwo Cobalt Holdings.
In its March 31, 2024 quarterly report, Celsius revealed that it is preparing non-binding agreements for a potential transaction with one or more strategic partners.
The company stated that it aims to finalize and execute the agreement by October 31, 2024, and will provide updates in line with its continuous disclosure obligations once a binding agreement is reached.
The Opuwo Cobalt Project holds license 4346, expiring on October 10, 2025. Updated resource estimates reveal 225.5 million tons of indicated and inferred resources, with grades of 0.12% cobalt, 0.43% copper, and 0.54% zinc, totaling 259,000 tons of cobalt. These resources position the project as a potential major supplier of cobalt for the global battery market.
Celsius acquired a 100% stake in Opuwo Cobalt in 2017, initially obtaining 76% ownership in the Opuwo Cobalt Project.
Key shareholders in Opuwo Cobalt include Elysium Growth Nominees Pty Ltd, Grove Trust, Morrigan Services Pty Ltd, and others.
In September 2017, Celsius increased its interest after Gecko Holdings agreed to sell its 20% share in Gecko Cobalt. As part of the agreement, Celsius acquired a 95% interest in three additional licenses across approximately 782 square kilometers in the Opuwo region, with the remaining 5% held by Amor Investments.
Celsius Resources is currently working to complete negotiations and formalize a transaction that will further unlock the potential of this significant cobalt and copper resource.
