SYDNEY, AUSTRALIA: Castillo Copper Limited (CCZ) Board has appointed CPS Capital Group, to restructure and then list via an IPO on the ASX, its wholly-owned Broken Hill Alliance (BHA) Project, which comprises a large footprint proximal to Broken Hill’s world-class zinc-lead-silver deposit, a news release said.
A new entity, Newco, will be formed to house the BHA Project, with CCZ slated to retain a significant interest post-IPO. Newco will be led by Managing Director, Dr Dennis Jensen, a former Federal Member of Parliament and CSIRO scientist who has significant experience consulting in the mining industry.
Subject to final approvals to progress the IPO, Newco is targeting to raise a minimum of $4.5m up to a maximum of $7.0m (and will include a preferential subscription allocation to CCZ shareholders) to fund a comprehensive exploration campaign to develop the BHA Project.
Castillo Copper’s Managing Director Simon Paull commented: “This is an excellent win-win outcome that enables CCZ to benefit materially from the development of the BHA Project through retaining a significant minority interest. Furthermore, it will enable the Board to channel more time and resources into developing the Queensland and primary Zambia Projects. Pleasingly, our strategic intent to evolve into a mid-tier copper group remains on track.”
Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia.
For CCZ, this corporate transaction is strategic as it presents a significant value creating opportunity through continuing to own a significant stake in Newco as the BHA Project is developed. In addition, CCZ’s Board can channel scarce resources into developing its priority copper projects in Queensland and Zambia.