Castillo Copper Limited is looking to raise up to $7 million, listing its highly prospective and underexplored Broken Hill Alliance project in New South Wales.
The Australian Stock Exchange-listed company has appointed CPS Capital Group to raise between $4.5m and 7m, with an initial public offering of spinoff Newco to house the project and its plethora of targets across a large footprint proximal to Broken Hill’s world-class zinc-lead-silver deposit.
Castillo sees the new venture led by former federal politician and CSIRO scientist Dr Dennis Jensen as a great opportunity by offering first dibs to shareholders on the new project while allowing the company to remain focused on its promising Big One project in Queensland and test-drill in Zambia.
“This is an excellent win-win outcome that enables CCZ to benefit materially from the development of the BHA Project through retaining a significant minority interest,” managing director Simon Paull said.
“Furthermore, it will enable the Board to channel more time and resources into developing the Queensland and primary Zambia Projects.
“Pleasingly, our strategic intent to evolve into a mid-tier copper group remains on track.”
The company’s Australian Stock Exchange-listed shares opened today, trading at 3.7c (8:00 am GMT+ 8 hours).