Castillo Copper Ltd (ASX:CCZ) has received commitments to raise up to $1.25 million through a share placement priced at 2 cents.
Funds will be used to continue advancing the company’s high-grade polymetallic Cangai Project in northeast New South Wales.
The immediate priority will be to continue the reverse circulation (RC) drilling program at Cangai to test new massive sulphide conductors under Mark’s, Greenberg’s & Volkhardts lodes.
Castillo recently intersected massive sulphides for which assays are pending and a number of compelling down-hole electromagnetic (DHEM) conductor targets were identified.
READ: Castillo Copper’s drilling continues to grow Cangai’s status as a high-grade polymetallic deposit
Castillo’s chairman Peter Meagher said: “With DHEM results showing several massive sulphide conductors under Mark’s, Greenberg’s & Volkhardts lodes open at depth, our first objective is to RC-drill test these to determine extensions to known high-grade mineralisation.
“Moreover, as there is significant incremental exploration upside within the Cangai Copper tenements, we will be undertaking an aero-magnetics program to identify new high-grade priority targets.
“On behalf of the Board, I would like to thank new and old shareholders alike for supporting our current funding initiative.”
Placement to be followed by share purchase plan (SPP)
Shareholders not able to participate in the placement will be able to participate in an SPP that will raise up to an additional $1.5 million.
Both investors in the placement and SPP will receive one free attaching operation exercisable at 5 cents expiring in 3 years from the date of issue.
Assays pending
Castillo is awaiting assay results for diamond drill core and metallurgical test-work on stockpile samples to enable Noble Group (SGX:CGP) transaction to close.
An off-take deal with Noble to process the legacy stockpiles nearby to the Cangai mine will provide Castillo with an important source of early-stage cash flow while it advances the re-opening of the Cangai Copper Mine.