Castillo Copper has announced that its entire issued share capital of 1,009,938,722 ordinary shares has been admitted to the standard segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange plc under the TIDM “CCZ”.
The Company’s ISIN is AU000000CCZ2. The Placing was arranged by SI Capital Limited.
Details of Admission and Placing
The Company has raised gross cash proceeds of £1,345,000 via the placing of 79,117,618 new Ordinary Shares (“Placing Shares”) at a price of 1.7 pence each, capitalising Castillo at £17.16 million.
Read more about base metals
The 1,009,938,722 ordinary shares admitted to the standard segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange plc to comprise 929,056,398 Existing Ordinary Shares, 79,117,618 Placing Shares and 1,764,706 Ordinary Shares issued to SI Capital Limited in connection with the Placing.
The Placing Shares will rank pari passu with existing Ordinary Shares.
Capitalised terms used in this announcement are as defined in the prospectus published by the Company on 27 July 2020, unless the context otherwise requires.
The Company’s strategy focuses on resource exploration projects that have the potential, through the application of disciplined and structured exploration and analysis, to be progressed towards the development of a mining operation. The dual listing will support the Company’s aim to transform the business into a mid-tier copper producer.
The three main projects across Australia and Zambia include:
- The Company’s flagship project is the Cangai Project in northern New South Wales, where the Cangai Copper Mine is located, one of Australia’s highest grading historic copper mines. The Company’s core focus is the development and expansion of the Cangai Copper Mine, which comprises a volcanogenic massive sulphide deposit, with a JORC Code compliant Inferred Resource of 3.2Mt at 3.35 per cent. Cu and up to 14.45 per cent. Cu in assayed diamond core intersections.
Mt Oxide Project
- Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which has significant exploration upside with several high-grade targets including an interpreted 130m thick by 1,500m by 450m massive sulphide bedrock conductor that is about to be drilled. The project is located approximately 150km north of Mt Isa in northwest Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper.
- The Company is the sole shareholder of Zed, an Australian company which holds four high-quality prospective assets across Zambia’s copper-belt, the second largest copper producer in Africa. Castillo Copper intends to initially focus on the Luanshya Project, which sits on the Zambian copper belt’s Lufilian Arc geological structure. The second priority for the Company is the Mkushi Project, which contiguously surrounds an operating open-pit copper mine, in a region proven to be highly prospective for Cu-Au mineralisation. The Company is currently working towards establishing a Zambian in-country presence, utilising local geologists and joint venture partner teams.
Use of Proceeds
- Progress work on the Cangai Copper Mine, which will potentially include an aeromagnetics programme and further exploration activities to facilitate upgrading the current JORC compliant inferred resource (3.2Mt at 3.35 per cent. Cu) to ultimately result in the Company’s strategy of completing a scoping study as a precursor to a bankable feasibility study
- Drilling the current targets at Mt Oxide, as well as undertaking geological mapping, geochemistry, ground physics and drone magnetic surveys to identify test drilling at the other Mt Oxide Projects
- Commitments towards exploring the Zed Projects
- Working capital
Simon Paull, Managing Director of Castillo Copper, said: “We are delighted to have completed our dual listing on the London Stock Exchange, a milestone for the Company and one that will help us drive the business forward towards our goal to become a mid-tier copper producer.
“The London listing significantly enhances the Company’s profile and gives us access to UK institutional investors that understand the global copper industry dynamics and are prepared to fund highly prospective projects.
“We welcome our new shareholders and look forward to updating them and the wider market during this exciting period of development for Castillo Copper.”