Castillo completes deal for copper mine

Castillo Copper (CCZ) has completed the divestment of its Cangai copper project in New South Wales to Infinity Mining.

Under the terms of the binding tenement sale agreement, Infinity Mining will issue 40 million shares and 20 million options (with a five-year term and a $0.07 exercise price) to Castillo Copper as consideration for the acquisition.

The divestment marks Castillo Copper’s second successful sale of non-core assets in the past 12 months, which will see the company focus its resources on its core projects to create shareholder value through strategic partnerships and targeted exploration initiatives.

Castillo Copper previously exited its position in Rimfire Pacific Mining by selling the Broken Hill West cobalt project, with proceeds being redirected to advance the Harts Range niobium-uranium project in the Northern Territory.

“This is excellent news as it coincides with CCZ shortly changing its name to New Frontier Minerals and rechannelling efforts into developing the Harts Range uranium, niobium and rare earth elements project in the Northern Territory,” Castillo Copper chair Ged Hall said.

“The board’s strategy to hold non-core assets until the right development partner materialises has the potential to unlock significant value that can be redeployed to advance the core Harts Range project.

“The board has an exciting exploration agenda for 2025 and looks forward to progressing this at an accelerated pace.”

As a significant shareholder in Infinity Mining, Castillo Copper is poised to benefit from value created through Infinity’s plans for an extensive exploration campaign at Cangai.

Looking forward, Castillo Copper aims to secure a strategic partner to develop the NWQ copper project, starting with the Big One deposit.

The company also plans to hold onto its remaining non-core assets, the Broken Hill East project in NSW and the Mkushi copper project in Zambia, until suitable buyers or partners are identified.