Shares in Celsius Resources Ltd (ASX:CLA, AIM:CLA, FRA:FX8) jumped 78% to 0.008p after the company agreed to sell its Namibian cobalt-copper project to a subsidiary of Chinese mining giant Chinalco for $15 million.
Celsius, an Australian and London-listed explorer, has signed a binding agreement to sell its 95% interest in the Opuwo project in north-western Namibia to Chinalco (Xiong'an) Mining.
The buyer is a non-ferrous metals subsidiary of Aluminum Corporation of China, the state-owned group focused on large-scale international base metals projects.
The $15 million consideration, equivalent to about A$21.7 million, compares with the project's carrying value of around A$3 million in Celsius' accounts.
The Opuwo project is an advanced exploration asset estimated to contain 259,000 tonnes of cobalt and 970,000 tonnes of copper.
Celsius said the sale would allow it to sharpen its focus on its portfolio of copper-gold projects in the Philippines and provide a source of near-term funding.
The company intends to use the net proceeds to progress its MCB copper-gold project, subject to resolving an arbitration dispute relating to Makilala Mining Company.
The deal is conditional on a number of approvals, including from Celsius shareholders, Namibian regulators and Chinese authorities.
As a sign of its commitment, Chinalco (Xiong'an) Mining has agreed to spend a minimum of $750,000 on exploration and $250,000 on metallurgical test work while those conditions are met.
Managing director Bardin Davis said the company was pleased to have reached agreement with a buyer of Chinalco's international standing.
