PERTH (miningweekly.com) – Metals developer Cazaly Resources on Friday confirmed that it would proceed with the acquisition of the Kaoko cobalt project, in northern Namibia.
The ASX-listed company in March announced an option over the project. A due diligence has now confirmed the potential of the project, with Cazaly telling shareholders that the company would now move to acquire a 95% interest in the project area.
“Cazaly is very pleased to secure the Kaoko project, which adjoins Celsius Resources’ rapidly growing Opuwo cobalt/copper project,” said MD Clive Jones.
“This region in Namibia appears to be a significant emerging cobalt bearing belt having remarkable similarities with the Central African Copperbelt in the Democratic Republic of Congo and Zambia. This is an ideal time to be exploring for large resources of cobalt, where we are seeing cobalt prices continuing to surge on the back of growing concern that future supplies may be unable to meet burgeoning demand.”
Cazaly will acquire 100% of the capital of unlisted company Kunene North, whose main asset is a joint venture (JV) with KDN Geo Consulting. The transaction would see Cazaly issue six-million of its own shares to the vendors and KDZ, and be obligated to spend N$3-million by November 2020 on the project.
The junior will also issue 10.5-million shares on the delineation of a Joint Ore Reserves Committee-compliant resource, containing at least 10 000 t of contained cobalt. A further A$1-million will also be payable on a formal decision to mine.
Cazaly is now setting up a local team and will start initial field work at the project, including a detailed review of existing data, reconnaissance work and surface sampling.