Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) has re-focused on enhancing confidence in the grade of its mineral resource across all three of its Australian assets following the inking of an option agreement to sell the company’s Zambian assets to Hyperion Copper.
CCZ’s three projects – the Broken Hill Alliance (BHA) Project and Cangai Copper Mine in New South Wales and the NWQ Copper Project in Queensland – hold a combined global mineral resource of 173,735 tonnes of copper and 21,709 tonnes of cobalt.
The company is planning to drill-test four prospects at BHA, assess three potential satellite prospects on the NWQ Copper project, and investigate several massive sulphide targets at the Cangai Copper Mine.
“The board’s focus is now steadfast”
“Recent gyrations in global commodity markets have further galvanised the board’s resolve to create value for shareholders via developing the core copper-cobalt projects,” Castillo Copper managing director Dr Dennis Jensen said.
“Moreover, having signed an option agreement with Hyperion Copper to sell the Zambia assets, the board’s focus is now steadfast on advancing the Australian projects which all have mineral resource estimates.”
Castillo’s option agreement with Hyperion Copper involves a US$100,000 option fee as well as a A$4 million purchase price and milestone payments.
If the option is exercised and Hyperion lists on the Alternative Investment Market (AIM), part of the London Stock Exchange, then CCZ will retain a greater than 25% stake in the company, with the right to appoint one director to the board.
Successful execution of the transaction will ensure CCZ is fully funded to continue its development efforts on its Australian assets, while also retaining exposure to the exploration potential within the Zambian copper assets via its holding in Hyperion.