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Castillo raises $11.7m to ramp up key projects

4 June 2021 12:40
ASX: CCZ
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Castillo Copper has raised $11.7 million from institutional and sophisticated investors in Australia and the UK to accelerate the development of its flagship project in Australia, along with other assets.

The ASX and London-listed company today said its immediate priority was to ramp up its Mt Oxide project in Queensland’s Mt Isa copper belt and the Luanshya and Mkushi projects in Zambia.

Castillo will issue 278,395,961 new shares at 4.2c per share (£2.3p) – an 11 per cent discount to its last trading 15-day volume-weighted average price – and one free attaching listed option for every two new shares subscribed.

The options, which will expire on 12 July 2024, can be exercised at 8c a share (£4.4p).

Managing director Simon Paull said the cash gives the board “significantly higher confidence” that 2021 will be a transformative year for the the copper junior.

“Due to strong demand from current and new institutional investors in Australia and the UK, we now have ample funds to ramp up our exploration efforts,” he said.

“Over the next few months, we will test-drill multiple copper targets across the Big One Deposit, Arya and Sansa prospects within our core Mt Oxide Project.

“Concurrently, we intend to expedite exploration programmes at the Luanshya and Mkushi Projects in Zambia.”

The raising comes as the copper price trades near record highs after surging around 30 per cent this year, and ahead of the coming initial public offering of 29Metals, which owns the operating Capricorn Copper Mine 7km south-west of Mt Oxide.

Castillo said it will start drilling at the Big One Deposit at Mt Oxide after a 26 drill-hole campaign for 2828m was recently finalised and designed to extend known mineralisation proximal to the 1200m strike event.

The company will also finalise test-drill targets for its Arya and Sansa Prospects within Mt. Oxide.

CCZ will issue a total of 157,041,087 Listed Options, all of which are subject to shareholder approval

which will be sought at the above-mentioned general meeting\In total, Castillo Copper will issue 157,041,087 listed options. Both the share placement and options are subject to shareholders’ approval in a meeting to called in due course.

 Perth-based Castillo also holds zinc-silver-lead-copper-gold deposits at Broken Hill and the Cangai Copper Mine in northern New South Wales.

 At around midday AEST, Castillo shares were trading down 13.7 per cent at 4.4c.

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