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Namibia cobalt project in hot demand

ASX-listed Celsius Resources, developer of the Opuwo cobalt project in Namibia, has received double the cash it was seeking in its share purchase plan which closed on 18 May 2018.

The company received applications of more than $6 million from shareholders. Given that valid applications received prior to the close of the share purchase plan (SPP) exceeded the targeted $3 million, Celsius Resources says that it will scale back valid applications equally on a pro rata basis in accordance with the terms of the SPP offer.

Excess application monies will be returned to successful applicants. Directors who applied for shares under the SPP offer will not receive any shares to maximise shares available to holders.

The funds raised from the SPP and the recently completed $9 million placement will be used primarily to fund the progression of the Opuwo cobalt project, including:

  • Completion of the project scoping study (already well advanced, due June 2018);
  • Completion of a pre-feasibility study;
  • Resource infill and extension drilling programme;
  • Exploration of additional targets identified across the broader project area, including newly acquired licences;
  • Commencement of a bankable feasibility study (assuming positive scoping study/pre-feasibility study outcomes); and
  • Working capital

Commenting on the SPP, MD Brendan Borg commented: “This is an excellent result and I would like to thank our shareholders for their strong support. Along with the completed placement we are well positioned to advance the Opuwo cobalt project and we look forward to continuing to progress the studies on the project as quickly as possible.”