- Castillo Copper (CCZ) is considering divesting its Broken Hill Alliance (BHA) Project into a spin-off company that could be listed on the ASX or the London Stock Exchange
- Castillo’s London-based Director, Ged Hall, believes the spin-off asset will be well received and supported by U.K. investors
- This decision follows a renewed interest in the Broken Hill region, which hosts iron oxide-copper-gold mineralisation and the world-class Broken Hill mine
- The divestment will also free up more resources for Castillo to focus on its Mt Oxide Project in Queensland, where recent drilling results have been strong
- The board is currently liaising with U.K. corporate advisor, Si Capital, on the best way to move the proposed divestment forward
- Castillo’s shares are in the grey, trading at 6.3 cents
Castillo Copper (CCZ) has decided to consider divestment opportunities for its Broken Hill Alliance (BHA) Project in the Broken Hill region of New South Wales.
Castillo’s decision follows a strategic review and a resurgence of interest in the Broken Hill region. The interest has reportedly been driven by the upcycle of base and precious metals, and ASX-listed Cobalt Blue’s (COB) world-class Broken Hill Project.
The opportunities may include divesting the Broken Hill-based asset into a spin-off company that could be listed on the ASX or the London Stock Exchange.
Castillo’s board is currently liaising with U.K. corporate advisor, Si Capital, on the best way to move this proposed action forward.
“The BHA Project is an excellent asset, as it comprises a substantial prospective footprint surrounding the world-famous Broken Hill silver-zinc-lead mine. We believe our intent to spin this asset out into a new vehicle will be well received and supported by U.K. investors,” London-based Director Ged Hall said.
Significantly, the area has been underexplored in the past 20 years which means there is considerable exploration upside potential.
Castillo’s motivation behind divesting the BHA project is it will free up resources to focus on developing the Mt Oxide Project in Queensland.
The Big One deposit, which is part of Mt Oxide, has consistently returned strong results since drilling began in October 2020 — proving the deposit contains a high-grade, shallow copper system.
Castillo’s shares are in the grey, trading at 6.3 cents at 1:02 pm AEDT.
LSE – Castillo Copper (ASX:CCZ) considers divesting Broken Hill asset