Castillo Copper Ltd (ASX:CCZ) is raising up to £300,000 (circa A$537,000) from UK investors via convertible loan notes with the intention of advancing exploration across its three pillars strategy encompassing projects in Zambia, Queensland and New South Wales.
The company will also seek shareholder approval to raise an additional £150,000 (circa A$268,000) from sophisticated investors under the same terms.
Funds from these capital raisings will be put towards exploration work across the three pillars with priorities on expediting Zambia due diligence and a field trip to Mt Oxide in Queensland.
Castillo Copper’s chairman Rob Scott said: “The support from UK investors for our convertible loan note is extremely encouraging, as it validates our three pillared strategic intent to grow the company into a mid-tier copper group.
“The incoming funding will allow our exploration activities to resume at full strength with our geology team’s priority focus expediting the due diligence program in Zambia as well as undertaking a field trip to Mt Oxide.
“The board would like to warmly welcome our new UK investors and looks forward to providing timely updates as development materialise.”
These funding arrangements are being made via Castillo's corporate advisor SI Capital.
Progress towards London listing
SI Capital has also confirmed that steady progress is being made towards achieving the company's London listing by Q4 2019.
This includes the appointment of international group SRK Consulting to complete a Competent Persons Report.
The unsecured convertible loan notes are broken down into two tranches, with key terms:
With the funds from tranche-1 accessible, the company’s priority is to begin exploration across the three pillars and start the process of transforming CCZ into a mid-tier copper group.