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Castillo Copper Sell Two Exploration Licences to Rimfire

11 January 2024 10:51
ASX: CCZ
Agreemnt

Castillo Copper (ASX:CCZ) has sold Exploration Licence 8572 and 8599 to Rimfire Pacific Mining (ASX:RIM), both located adjacent to Rimfire’s Bald Hill Cobalt prospect, 30 kilometres west of Broken Hill, in New South Wales.

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Figure 1: Rimfire Broken Hill Cobalt Project (red blocks), regional tenement holders and target locations

Terms of Agreement

Rimfire will issue Castillo with 8,064,516 Rimfire Ordinary Shares worth $150,000, at an issue price of $0.0186.

This price is indicative of the 5-day Volume Weighted Average Price (VWAP) up to and including the last day of trading immediately before the date of execution of the agreement.

Additionally, Rimfire will issue Castillo a further $150,000 worth of Rimfire Ordinary Shares if, at any point following the agreement’s completion, Rimfire’s 5-day VWAP share price surpasses $0.0279, representing a 50% increase from the consideration shares issue price.

The Castillo tenements are also 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, equivalent to $100,000 worth of shares at the issue price $0.0186.

Mutually Beneficial Agreement

The acquisition agreement mutually benefits both companies. Rimfire gains contiguous exploration licenses for its Bald Hill Cobalt prospect, allowing Castillo to redirect its focus towards other exploration endeavours.

Castillo Copper is a copper-focused exploration company with four projects across Australia and Zambia.

The Company’s strategy involves identifying and selecting assets with the potential to develop economic mineral resources while actively advancing each project up the value curve.

In October, Castillo declared its NWQ Copper Project, situated in the esteemed Mount Isa copper belt, was a core asset, marking a pivotal milestone and heralding an extensive exploration campaign over its 20 prospects, excluding the Big One Deposit.

The Project holds ten high-grade targets, delivering significant exploration upside.

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Figure 2: Castillo’s NWQ Copper Project

The Company’s other Projects include the Zed Project in Zambia and Cangai Copper Mine, which is notably one of Australia’s highest grading historic copper mines with a JORC compliant resource of 3.2Mt @ 3.3%, up to 14.45% Cu.

CCZ’s Australian Securities Exchange-listed share price is currently trading at $0.0055 (10.45am UTC+ 8 hours).

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