Castillo Copper’s three-pillar strategy to be mid-tier copper producer on track with $2.1 million fund-raising to expedite plans
Castillo Copper Ltd (ASX:CCZ) is firmly on track with a three-pillar strategy to transform into a mid-tier copper business having completed a $2.1 million fund-raising exercise to expedite its operations in Australia and Zambia.
The company, which has three core copper assets in New South Wales and Queensland in Australia and in Zambia, is close to drilling at its Mt Oxide pillar in Queensland's Mt Isa copper-belt.
The company has a three-pillar strategy to build a copper business. They are:
➢ Pillar 1: Mt Oxide project - Arya prospect with large scalable interpreted massive sulphide conductor and high-grade Big One deposit that are set to be drill-tested once approvals secured;
➢ Pillar 2: Four prospective Zambia copper projects near established mines with JORC compliant resources; and
➢ Pillar 3: Cangai Copper Mine - plans to develop one of Australia's highest grading copper deposits to bankable feasibility study (BFS).
Castillo Copper is in the final stages of its planned listing on the Secondary Board of the London Stock Exchange.
The company has also formed the Broken Hill Alliance with Squadron Resources and Impact Minerals Ltd (ASX:IPT) seeking to optimise another asset in Far West NSW.*Fund-raising*
Last week, the company raised $2.1 million after completing a placement to current and new sophisticated and institutional investors.
There will be 95,454,545 new shares issued at 2.2 cents per share, representing a 12% discount to the closing price on June 16, 2020.
The placement, which was well supported by current and new Australian and UK shareholders, also includes one free attaching unlisted option for each share subscribed for, exercisable at 5 cents, expiring three years from the date of issue.
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).
As well as the Mt Oxide prospects, funds will also be allocated to the ongoing development of the other two pillars - Cangai Copper Mine and projects in the Zambian copper-belt - and general working capital.