TIDMCCZ
RNS Number : 3784Z
Castillo Copper Limited
11 January 2024
11 January 2024
CASTILLO COPPER LIMITED
("Castillo" or the "Company")
Sale of Two Broken Hill Exploration Licences
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
announces that it has agreed the sale of two of its 100% owned
Exploration Licences, EL 8572 and EL 8599, at the Broken Hill
Project ("Broken Hill"), to Rimfire Pacific Mining LTD
("Rimfire")(ASX:RIM).
Highlights
-- Castillo to complete the sale of two of its 100% owned
Exploration Licences at Broken Hill, EL 8572 and EL 8599, to
Rimfire
-- Under the terms of the agreement, Rimfire will issue Castillo
with 8,064,516 Rimfire Ordinary Shares ("Consideration Shares")
being $150,000 worth of shares at an issue price of $0.0186
("Consideration Shares Issue Price")
-- Rimfire to issue a further $150,000 worth of Rimfire Ordinary
Shares ("Subsequent Shares") to Castillo Copper if at any time
after Completion, Rimfire's share price 5-day Volume Weighted
Average Price ("VWAP") is greater than $0.0279, which is 50% above
the Consideration Shares Issue Price ("Subsequent Shares Issue
Price")
-- The Board believes that this is an excellent outcome for all
stakeholders, allowing Castillo to focus on the development of its
core portfolio, whilst simultaneously ensuring it accrues the
benefits of the development potential at EL 8572 and EL 8599
through the Consideration Shares received
-- Castillo still holds Exploration Licences EL 8434 and EL 8435 at Broken Hill
Ged Hall, Chairman of Castillo Copper, said: " We are pleased to
have agreed what the Board views as a mutually beneficial agreement
to sell two of our exploration licences at Broken Hill to Rimfire.
Following the Strategic Review we completed late last year, the
Company is streamlining its portfolio of high-quality assets and
focusing on those it deems as core, which the Board believes will
allow Castillo to most optimally generate value for shareholders.
This agreement will allow Castillo to focus on the development of
our portfolio of assets, while still retaining interest in the
Broken Hill Project."
Details of Agreement
Rimfire will acquire the Castillo tenements on the following
terms:
-- Rimfire to issue Castillo Copper with 8,064,516 Rimfire
Ordinary Shares being $150,000 worth of shares at an issue price of
$0.0186. The issue price is the 5-day VWAP up to and including the
last day of trading immediately before the date of execution of the
Tenement Purchase Agreement; and
-- Rimfire to issue a further $150,000 worth of Rimfire Ordinary
Shares to Castillo Copper if at any time after Completion Rimfire's
share price 5-day VWAP is greater than $ 0.0279, which is 50% above
the Consideration Shares Issue Price. The Subsequent Shares to be
issued would be at the Subsequent Shares Issue Price, resulting in
the issue of 5,376,345 Rimfire Ordinary Shares if the Subsequent
Shares Issue Price is met.
All Consideration Shares and Subsequent Shares are subject to a
6-month escrow period.
The Castillo tenements are subject to historic royalties of a 3%
Net Smelter Return (EL8599) and a 1% Net Smelter Return
(EL8572).
In return for the waiving of all Royalties, Rimfire has agreed
to issue the individual Royalty holders with 5,376,337 Rimfire
Ordinary Shares being $100,000 worth of shares at the Consideration
Shares Issue Price $0.0186 (Royalty Holder Shares).
All Royalty Holder Shares are subject to a 6-month escrow
period.
At the time of writing, Rimfire, Castillo Copper and the Royalty
Holders are completing all necessary ancillary legal documentation,
and the transaction is still subject to standard regulatory
conditions such as Ministerial consent for the transfer of the
tenements.
The Consideration Shares, Subsequent Shares and Royalty Holder
Shares will be issued under Rimfire's ASX Listing Rule 7.1
capacity.
Overview
BHA No.1 Pty Ltd, a wholly owned subsidiary of Castillo Copper
Ltd ( ASX: CCZ ), has executed an agreement with Rimfire to sale an
unencumbered 100% of their Exploration Licences EL 8572 and EL 8599
("Castillo tenements") which lie adjacent to, and contain the same
host rocks as that found at Rimfire's Bald Hill Cobalt prospect, 30
kilometres west of Broken Hill, NSW.
Diamond drilling by Rimfire at Bald Hill last year successfully
intersected high-grade cobalt (Co) associated with strongly
disseminated to semi-massive sulphide (pyrite, pyrrhotite and trace
chalcopyrite + sphalerite) mineralisation (See Rimfire ASX
Announcement dated 18 September 2023), including;
-- 125m @ 0.13% Co from 198 metres in FI2470 including 97m @ 0.15% Co,
-- 58m @ 0.13% Co from 62 metres in FI2471 including 2m @ 0.24% Co and 17m @ 0.15% Co,
-- 33m @ 0.11% Co from 58 metres including 4m @ 0.23% Co and 2m @ 0.21% Co, and
-- 100m @ 0.08% Co from 71 metres in FI2470 including 68m @ 0.10% Co.
The Castillo tenements cover the same sequence of Proterozoic
age deformed and metamorphosed gneiss, psammite, and amphibolite
units that host the Bald Hill cobalt sulphide mineralisation and as
such are considered prospective for:
-- Bald Hill style cobalt sulphide mineralisation hosted within
quartz - albite - magnetite gneiss and psammopelitic composite
gneiss; and
-- Bedrock Rare Earth Element ("REEs") mineralisation associated
with shear - hosted pegmatite occurrences.
An examination of the NSW Government Minview online GIS portal
reveals several historic mineral occurrences that require follow up
to better determine their geological significance and exploration
potential.
Of initial interest are a cluster of gossanous, quartz veined
and copper-stained occurrences within the northwestern portion of
EL8572 (NSW Mineral Occurrences 181678, 181681, 181683 - 181684,
181686, and 181688) and multiple shear - hosted davidite - bearing
pegmatite occurrences within the southern portion of EL8572 and
EL8599 (NSW Mineral Occurrences 181344 - 181348). Davidite is a
rare earth oxide mineral with chemical end members of either La
nthanum or Ce rium.
In conjunction with ongoing fieldwork in the Bald Hill area,
Rimfire will shortly commence field reconnaissance of the Castillo
tenements to determine exploration priorities for future work
programs at Broken Hill.
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and
Corporate Broker) +44 (0)1483 413500
Nick Emerson
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia. The group
is embarking on a strategic transformation to morph into a mid-tier
copper group underpinned by its core projects:
-- A large footprint in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration
upside through having several high-grade targets and a sizeable
untested anomaly within its boundaries in a copper-rich region.
-- Four high-quality prospective assets across Zambia's
copper-belt which is the second largest copper producer in
Africa.
-- A large tenure footprint proximal to Broken Hill's
world-class deposit that is prospective for
zinc-silver-lead-copper-gold and platinoids.
-- Cangai Copper Mine in northern New South Wales, which is one
of Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker
"CCZ."
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DISQFLBFZFLZBBX
(END) Dow Jones Newswires
January 11, 2024 02:00 ET (07:00 GMT)
Castillo Copper (LSE:CCZ)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Castillo Copper (LSE:CCZ)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
