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(Alliance News) - Castillo Copper Ltd on Thursday said it had sold two of its Zambian exploration licences to Rimfire Pacific Mining Ltd.
Castillo Copper is a base metal explorer, primarily focused on copper across Australia and Zambia. In October, the company conducted a strategic review of its asset portfolio, intended to determine which of its assets remain "core" to its goal of creating shareholder value.
Rimfire will pay Castillo up to AUD300,000, around USD200,000, for two exploration licences, located at Broken Hill in the Kabwe district of central Zambia. Castillo has previously called the asset a "world-class deposit", which is prospective for zinc, lead, silver, copper, gold and platinoids. Castillo will retain two exploration licences at Broken Hill following the transaction.
AUD150,000 will be paid via the issue of 8.1 million Rimfire shares at a price of AUD0.0186 each. A further AUD150,000 worth of shares will be issued to Castillo, should Rimfire's five-day share price average exceed AUD0.0279 at any time after the deal's completion.
Castillo's Chief Executive Officer Ged Hall said: "We are pleased to have agreed what the board views as a mutually beneficial agreement to sell two of our exploration licences at Broken Hill to Rimfire. Following the strategic review we completed late last year, the company is streamlining its portfolio of high-quality assets and focusing on those it deems as core, which the board believes will allow Castillo to most optimally generate value for shareholders. This agreement will allow Castillo to focus on the development of our portfolio of assets, while still retaining interest in the Broken Hill project."
Castillo Copper shares went untraded on Thursday, last quoted at 0.34 pence each in London at midday on Wednesday.
By Hugh Cameron, Alliance News reporter
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