Castillo’s existing assets, which were acquired outright in mid-2017, comprise six highly prospective copper-cobalt-zinc project areas in New South Wales and Queensland.
Following the acquisition, Castillo will own 11 project areas in four geographic locations.
This will include Jackaderry (three prospects); Broken Hill (two); Mt Oxide (three) and Marlborough (three).
Importantly, this includes the historic Cangai copper-cobalt mine within the Jackaderry South prospect, where legacy data confirms the presence of supergene ore with up to 35% copper.
The acquisition will result in the doubling of the key Jackaderry South project area that houses the Cangai Mine.
The shareholders of the private company will receive 15 million shares of Castillo and a net smelter return royalty of 3% as consideration for the transaction
Castillo’s objective is to prove up to three JORC inferred resources starting with Cangai mine, then Broken Hill and finally Mt Oxide project later in the year.
The company’s share price has almost doubled in the past one month and is currently trading at $0.041.