14/09/2017 - 14:05

Castillo in $3.4m raising

14/09/2017 - 14:05

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Castillo Copper has raised $3.4 million as the company seeks to undertake drilling to reopen the Cangai copper mine in NSW.

Castillo in $3.4m raising
Copper is used in alloys and as a conductor.

Castillo Copper has raised $3.4 million as the company seeks to undertake drilling to reopen the Cangai copper mine in NSW.

The raising, led by CPS Capital, was oversubscribed, with new shareholders from Hong Kong, Singapore and Australia coming onboard.

It was priced at 3.2 cents per share.

The company wants to confirm resource extensions at Cangai, with the move to be followed by planned exploration at other projects, comprising Jackaderry, Mt Oxide and Marlborough.

Castillo Copper executive director Alan Armstrong said the board welcomed the new investors.

“Indeed, the board highly appreciates their and existing shareholders’ overwhelming support for the capital raising exercise, as Castillo now has ample working capital to progress proving up JORC-compliant resources across its four exciting projects,” he said.

“The immediate focus will be a drilling program for the Cangai Copper mine and surrounding area to expand and prove-up the work done to date.

“If the economics and scale are favourable, the board will review all available evidence to determine the viability of reopening the mine.

“While Cangai will receive most of the initial focus, plans for proving up the other three projects remain on track.”

Shares in Castillo were up 20.6 per cent to 4.1 cents each at the time of writing.

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