In under three weeks since ASX-listed explorer Cazaly Resources (ASX:CAZ) received an option to acquire the Kaoko Kobalt project in northern Namibia, the company has doubled-down, acquiring the promising tenements.
The move is sure to excite investors with shares in Cazaly jumping as high as 21 percent at the announcement of the acquisition option.
The company reports that it has completed a due diligence process which confirmed Kaoko Kobalt’s promise for producing the in-demand battery metal, while failing to encounter any significant issues.
The Kaoko Kobalt project abuts Celsius Resources Limited’s (ASX:CLA) Opuwo Cobalt project and hosts the probable continuation of the Opuwo cobalt-copper bearing Dolomite Ore Formation (DOF) horizon.
The project is located in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from port.
In order to acquire the project Cazaly will now finalise its acquisition of 100% of the capital in Australian unlisted miner Kunene North, which holds a joint venture with KDN Geo Consulting, the local Namibian company which owns the exploration license over Kaoko Kobalt.
Cazaly will issue 6 million shares to Kunene North and KDN and commit to spending A$270,000 on the project, while also agreeing to issue 10.5 million Cazaly shares upon completion of a JORC compliant resource and paying A$1 million – via cash or scrip – upon a formal decision to mine.
Effectively, Cazaly will own 51% of the joint venture at the Kaoko Kobalt project and can earn further equity in the project up to a 95% interest.
Cazaly is very pleased to secure the Kaoko project which adjoins Celsius Resources’ rapidly growing Opuwo cobalt–copper project,” Cazaly Resources joint managing director Clive Jones said.
“This region in Namibia appears to be a significant emerging cobalt bearing belt having remarkable similarities with the Central African Copperbelt in the DRC 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,” he said.
Mr Jones confirmed that the company is finalising access to the ground and will commence setting up a local team which will begin initial field work.
This will including detailed review of existing data, reconnaissance work and surface sampling.
Shares in Cazaly opened today at 5.1¢ per share and are currently up 4 percent.