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Castillo commit to core projects

22 June 2022

ASX:CCZ

Jack Baker

Castillo Copper has granted Hyperion Copper an exclusive 12-month option to acquire its wholly-owned subsidiary and held copper belt assets across the southern African nation of Zambia.

It allows the company to focus on its core projects while retaining shareholder benefits from a fully committed exploration of the tenements.

Castillo will be brought in $142,000 for the option to acquire its subsidiary, Zed Copper, on top of $4 million in Hyperion shares if exercised — and a further $2.7M stake upon definition of 200,000 tonnes of contained copper.

Hyperion intends to list on London’s AIM market to raise funds for fully developing its African projects.

Under the agreement, Castillo will hold no less than a quarter of the budding company.

Zed Copper’s Zambian holdings

Castillo said it was an excellent outcome for all stakeholders.

“Securing a development partner for our Zambia Projects has been a strategic priority to ensure optimal value creation,” managing director Dennis Jensen said.

“We now have a partner who will fund all future development work, whilst benefits accrue to CCZ via retaining the shareholding in Hyperion Copper.”

The explorer will use added funds to continue the development of its core Australian copper and cobalt assets.

CCZ’s Australian Stock Exchange-listed share price has risen 7.69 per cent today, selling at 1.4c (10.38 am UTC+ 8 hours).

COMPANY OVERVIEW

Castillo Copper Limited (ASX: CCZ) is an ASX-listed base metal explorer primarily focused on copper then nickel, zinc & cobalt.

The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by three core pillars:

    • Pillar I: Cangai Copper Mine in northern New South Wales, which is one of Australia’s highest grading historic copper mines with a JORC inferred resource of 3.2Mt @ 3.35% Cu.
    • Pillar II: The Mt Oxide project in the Mt Isa district, north-west Queensland, which delivers significant exploration upside through having a sizeable untested anomaly within its boundaries in a copper-rich region.
    • Pillar III: Several high-quality prospective assets in Zambia, which is the second largest copper producer in Africa.

In addition, Castillo Copper is progressing a dual listing on the standard board of the London Stock Exchange.

COMPANY INFORMATION

ASX:CCZ

Website
castillocopper.com

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