Castillo Copper Ltd (ASX:CCZ) (LON:CCZ) (FRA:70R) will ramp up development at its Mt Oxide and Zambian copper projects after raising A$11.7 million (£6.4 million) in a placement strongly supported by institutional and sophisticated investors in Australia and the UK.
The company will issue 278,395,961 new shares at A$0.042 (£0.023) per share, representing an 11% discount to the last 15-day trading VWAP, and one free attaching listed option for every two new shares subscribed for, exercisable at A$0.08 (£0.044), expiring July 12, 2022.
With adequate funding now secured, the company is well positioned to deliver on its strategic intent to transform into a mid-tier copper group.
The immediate priority is to accelerate developing the flagship Mt Oxide Project in Queensland’s copper-belt and, concurrently, the Luanshya and Mkushi projects across Zambia’s copper-belt.
“2021 will be transformative year”
Castillo Copper managing director Simon Paull said: “Due to strong demand from current and new institutional investors in Australia and the UK, we now have ample funds to ramp up our exploration efforts.
“Over the next few months, we will test-drill multiple copper targets across the Big One Deposit, Arya and Sansa prospects within our core Mt Oxide Project.
“Concurrently, we intend to expedite exploration programs at the Luanshya and Mkushi projects in Zambia.
“The board now has significantly higher confidence that 2021 will be a transformative year for Castillo Copper.”
Drilling commencing at Mt Oxide
With all logistics in place, work is set to start on a comprehensive drilling campaign at three prospects within the Mt Oxide Project in the Mt Isa copper-belt in northwest Queensland:
- Big One Deposit: A 26 drill-hole campaign for 2,828 metres has been finalised and designed to extend known mineralisation proximal to the 1,200 metres strike event; and
- Arya and Sansa prospects: an expanded program is being formulated to fully drill-test all known shallow and deep bedrock conductors.
Notably, there has been a recent resurgence of interest in the Mt Isa copper-belt which reflects several positive factors, including:
- Prevailing copper price, near 10-year highs, due to global concerns forward demand – driven by green stimulus and greater take-up of electric vehicles – will create a persistent supply deficit; and
- Upcoming IPO of 29Metals on the ASX – owner of the operating Capricorn Copper Mine around 7 kilometres southwest of the Mt Oxide Project – within the next few weeks.
Developing Zambian projects
Across Zambia’s copper-belt, the primary focus will be on advancing the Luanshya and Mkushi projects which are proximal to producing copper mines.
In addition, significant surface sampling has enabled sizeable anomalous areas to be defined which should facilitate identifying test-drill targets once a geophysics campaign has been completed.