Zambia and Australia-focused Base metal explorer Castillo Copper has entered into a conditional agreement with ASX-listed Infinity Mining to sell three granted exploration licences EL 8625, EL 8635 and EL 8601 in northern New South Wales, which host Cangai Copper Mine.
It said the divestment aligns with its strategic goal to align with the right development partner to ensure non-core asset portfolio optimisation, enabling the board to focus on advancing the core NWQ Copper Project in the Mt Isa copper belt, beginning with the Big One Deposit.
"The strategic sale of the Cangai Copper Mine tenement package to Infinity Mining is an excellent outcome, as it is the second such transaction which unlocks value this calendar year,” said company chairperson Ged Hall.
He said the board was highly confident that Infinity can fully develop the Cangai Copper Mine tenements, which in turn has the potential to generate material value for stakeholders given the equity position Castillo will hold post-transaction close.
Meanwhile, Castillo intends to hold the remaining two non-core assets—the BHA East Project in NSW and the Mkushi Copper Project in Zambia—until the right development partners are identified.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
