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Castillo Copper Ltd - Perth, Australia-based exploration company focused on copper across Australia and Zambia - Grants London-based Hyperion Copper Ltd a 12-month option to acquire 100%-owned subsidiary Zed Copper for GBP3.8 million. Zed Copper owns four projects in Zambia's copper-belt, including the Luanshya and Mkushi projects. Hyperion will pay a non-refundable fee of USD100,000 for the exclusive option, and if it chooses to exercise, will issue shares worth GBP2.5 million to acquire 100% of Zed Copper's share capital. Castillo will a receive further GBP1.5 million in Hyperion shares upon a global mineral resource estimate which delinates 200,000 tonnes of contained copper metal.
Hyperion intends to list on London's AIM market in the second half of this year. Under the terms of their agreement, Castillo's shareholding would be no less than 25% after the listing, and it would have the right to nominate one director to Hyperion's board.
"Securing a development partner for our Zambia projects has been a strategic priority to ensure optimal value creation. From the board's perspective, we now have a partner who will fund all future development work, whilst benefits accrue to Castillo via retaining the shareholding in Hyperion Copper post its AIM listing," says Managing Director Dennis Jensen.
Current stock price: 0.79 pence, down 7.2% on Wednesday
12-month change: down 62%
By Elizabeth Winter; elizabethwinter@alliancenews.com
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