Celsius Resources Ltd. on Jan. 19 said it acquired an option to earn up to a 76% stake in the highly prospective Opuwo cobalt project in Namibia by fully acquiring project holder Opuwo Cobalt Pty. Ltd.
The company will issue 27,777,773 shares to shareholders of Opuwo Cobalt following approval at a meeting.
The company has paid A$25,000 for a three-month exclusive option.
The ASX-listed company will earn an initial 30% stake in the project by spending A$500,000 within six months after exercising the option to proceed.
The company will have to spend another A$1 million in one year to earn the next 30% stake, and the final 16% will be earned by spending a further A$1 million within six months.
Following the earning of the 76% interest, all parties will be required to contribute to exploration.
The cobalt-copper mineralization at the Opuwo is hosted in the dolomite ore formation within the Neoproterozoic Ombombo Subgroup of the Kaoko Belt in northern Namibia.
Celsius plans to start initial drilling with a cost of A$200,000 to A$350,000, subject to finalization of drilling techniques. The company will plan further exploration work on the results of this first phase of drilling.