By:Staff writer
Celsius Resources Ltd., which has a 95% interest in the highly prospective Opuwo Cobalt Project in northern Namibia, expects a market capitalisation of 14.8 million pounds ($18.2 million) when its shares start trading on London’s junior AIM Monday next week, it said Wednesday.
The natural-resources exploration-and-development company–which is listed in Australia under the ticker CLA – expects to be listed in London in late January.
The company said it has currently 1.55 billion shares in issue and further 299.4 million new shares placed for the admission at an issue price of 0.8 pence.
Initial public offering in London raises 2.4 million pounds at an issue price of 0.8 pence per share. The IPO price gives Celsius a market capitalisation on admission of GBP14.8 million. Its broker for AIM is SP Angel Corporate Finance LLP and its nominated adviser is Beaumont Cornish Ltd. Celsius nets GBP1.9 million after expenses.
Celsius already is listed on ASX in Sydney, where it has traded since the end of 2016. It currently has a market cap there of AUD31.1 million, about 17.8 million pounds. The stock closed Wednesday at AUD0.02, about 1.15p.
According to the company there is strong interest from UK and European investors, as well as Institutional support have been identified, which will provide additional funding for both the company and its projects.
“The purpose of the AIM listing is to encourage more institutional investors to support current and future development of the Company’s portfolio of assets into operating mines. The AIM market has a proven track record for raising capital for companies with operations in both the Philippines and Africa,” Celsius said in a release this week.
Celsius is seeking to explore and develop potential copper-gold assets in the Philippines and a cobalt asset in Namibia.
Celsius’ strategy is to continue identifying and developing world class, high-grade assets, and the Opuwo Cobalt Project represents significant global potential, it says.
Along with copper, cobalt is a key element in the production of lithium-ion batteries used in electric vehicles and home battery storage.
Updated indicated and inferred mineral resource at Opuwo doubles to 225.5 million tonnes, grading 0.12% cobalt, 0.43% copper and 0.54% zinc. Also, 259000 tonnes of contained cobalt demonstrates potential for Opuwo to be a significant future supplier of cobalt into the battery market.
Furthermore, 970 000 tonnes of contained copper are anticipated to enhance the viability of the project given current and forecast copper prices.