Celamin Holdings Ltd (ASX:CNL) has recovered its 50.99% interest in Chaketma Phosphate SA (CPSA), holder of the Chaketma Phosphate Project in Tunisia and is accelerating legal, accounting and technical due diligence to rapidly progress the project.
Chaketma is a potential large-scale, world-class phosphate development asset, which comprises six prospects over a total area of 56 square kilometres with an inferred resource of 120 million tonnes at 20.4% phosphorus oxide.
This resource has been confirmed from drilling at only two out of the six prospects at the project.
Share transfer completed
The company has been advised that the CPSA share transfer restoring its interest in CPSA has been completed by the court-appointed expert.
Celamin will immediately seek a shareholder meeting and update from CPSA and will also continue in-depth legal and accounting due diligence on CPSA.
“Excited to restart working”
Celamin managing director Simon Eley said: “We are delighted to confirm, despite the lack of compliance and measures taken by TMS, Celamin has been successful in recovering its interest in Chaketma.
“We wish to thank the Celamin team, the Government of Tunisia, our loyal and patient shareholders, our Tunisian supporters and legal advisors for their tireless efforts in facilitating Chaketma’s return.
“We are very excited to be restarting work on what is a world-class fertiliser project in Tunisia.”
Majority stake recovered
Celamin has recovered 50.99% of CPSA following the registration of the share transfer completed in Tunisia, reducing the interest of Tunisian Mining Services (TMS) to 48.99%.
This marks a key step in resolving a dispute dating back to February 2015 following the illegal transfer of Celamin’s interest in CPSA by its JV Partner TMS.
Celamin will now request a CPSA shareholder meeting following which it will be updated on all matters relating to CPSA.
TMS still owes Celamin US$4.7 million in costs and damages and the company has initiated multiple actions to recover the amount.
Fast-track project relaunch
Celamin will shortly implement an accelerated program to re-start the Chaketma Phosphate Project.
Upon gaining project control, Celamin will undertake a GAP analysis of all prior work completed at Chaketma, including the period 2015 to 2020
This will form the basis for starting a pre-feasibility study (PFS), leading into a definitive feasibility study with the scope to be determined from the PFS.
Given Chaketma’s scale and favourable infrastructure, Celamin will assess staged project development starting from initial rock phosphate concentrate project using simple methods to complex downstream processing ending at exporting fertiliser products into the global market.
Celamin’s shares have jumped 25% today and are trading at 10.5 cents.