en.Wedoany.com Reported - Celsius Resources (ASX:CLA) has reached an agreement with Chinalco (Xiong'an) Mining Corporation to sell its Opuwo cobalt-copper project in Namibia for US$15 million (A$21.8 million).

The transaction involves the sale of an intercompany loan and Celsius Resources' 95% interest in Opuwo Cobalt Holdings, held through its wholly-owned subsidiary Opuwo Cobalt Pty Ltd. The consideration of US$15 million (A$21.8 million) represents a significant premium over the project's book value of US$3 million.

The Opuwo project has a mineral resource estimate of 225.5 million tonnes, grading 0.12% cobalt, 0.43% copper, and 0.54% zinc, containing 259,000 tonnes of cobalt and 970,000 tonnes of copper.

Celsius Resources Managing Director Bardin Davis stated that this sale allows the company to focus more on its copper-gold asset portfolio in the Philippines while securing substantial near-term funding. Davis said Celsius is pleased to reach an agreement with an entity of international standing and reputation like Chinalco (Xiong'an) Mining.

The transaction is subject to several conditions precedent, including Celsius shareholder approval, renewal of the exclusive prospecting license and environmental clearance certificate, as well as approvals from Namibian and Chinese regulatory authorities. Chinalco (Xiong'an) Mining has agreed to provide a non-refundable exploration commitment of US$750,000 for exploration and US$250,000 for metallurgical test work, subject to the satisfaction of conditions precedent.

The agreement stipulates a six-month closing date from the signing date, extendable by two months. If the agreement is terminated, Chinalco shall not acquire any interest within the Opuwo project area and a two-kilometer radius of its boundary for three years.