Castillo Copper raises $2.1 million to accelerate drilling at priority Arya prospect of Mt Oxide pillar

Castillo Copper Ltd (ASX:CCZ) has raised $2.1 million after completing a placement to current and new sophisticated and institutional investors with funds to expedite a drilling campaign at the Mt Oxide pillar in Queensland’s copper-belt. There will be 95,454,545 new shares issued at 2.2 cents per share, which represents a 12% discount to the closing price on June 16, 2020. The placement, which was well supported by current and new Australian and United Kingdom shareholders, also includes one free attaching unlisted option for each share subscribed for, exercisable at 5 cents, expiring three years from date of issue. “Arya prospect the priority” Castillo Copper managing director Simon Paull said: “Our immediate priority is to commence drilling the Arya prospect, targeting the interpreted massive sulphide and supergene ore targets. “Encouragingly, with eight additional prospects on the radar, there remains a substantial pipeline of exploratory work ahead to complete at the Mt Oxide pillar. “Overall, the board appreciates the support from current and new shareholders, as it represents a significant vote of confidence in our forward agenda to transform CCZ into a leading mining group.” Placement shares and options will be issued in a single tranche without shareholder approval under CCZ’s existing placement capacity pursuant to ASX Listing Rules 7.1 (12,935,940 shares and 104,454,545 options) and 7.1A (82,518,605 shares). Drilling campaign planned The company has interpreted a massive sulphide target at the Arya prospect around 130 metres thick, with dimensions of 1,500 metres by 450 metres at around 426 metres depth. In addition, there are two shallow interpreted supergene ore targets which are around 25 metres deep, 25 metres thick with dimensions of about 160 metres by 50 metres and 270 metres by 280 metres respectively. The company has approval in principle to progress the drilling campaign at Arya prospect, subject to finalising timelines with a drilling contractor and ratification from the landowner CCZ now has approval to send a team to the Arya prospect to conduct non-invasive fieldwork to finalise the targets to test-drill ahead of the campaign getting underway. Other pillars As well as the Mt Oxie prospects, funds will also be allocated to ongoing development of the other two pillars - Cangai Copper Mine and projects in the Zambian copper-belt - and general working capital. Castillo Copper is in the final stages of completing its listing on the Standard Board of the London Stock Exchange.