REG - Castillo Copper Ltd - December 2023 Quarterly Activities Report
30/01/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240130:nRSd2839Ba&default-theme=true
RNS Number : 2839B Castillo Copper Limited 30 January 2024
30 January 2024
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
December 2023 Quarterly Activities Report
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to present
shareholders its latest quarterly report for the period 1 October 2023 to 31
December 2023.
HIGHLIGHTS:
STRATEGIC ASSET PORTFOLIO REVIEW
· A wholesale asset portfolio review was completed to support the
definition of next steps and optimal pathways to create shareholder value.
· The review identified which assets remain core and highly prospective
to prioritise exploration capital and leverage future opportunities with
strategic development partners.
NWQ COPPER PROJECT, QUEENSLAND
· The Board collectively endorsed the geology team's motion to earmark
the NWQ Copper Project as a core asset.
· Growing geological understanding of the 20+ prospects is now a Board
focus, in readiness of engaging potential strategic partners.
· Field trips commenced to map and fully assess future exploration
targets across the asset.
CORPORATE
· Former Managing Director Dr Dennis Jensen tendered his resignation
during the Quarter.
· Mr Jack Sedgwick (BEng BCom MBA - Distinction) GAICD transitioned
from interim Executive Director to Non-Executive Director.
· Cash on hand at the end of quarter totalled $1,747,000.
· Rehabilitation Security Bonds which will convert to cash within 12
months totalled $311,000 at quarter end.
STRATEGIC ASSET PORTFOLIO REVIEW
Identification of Core and Non-Core Assets
During the quarter, a strategic asset review was completed to assess the
location, timing and sequence of planned exploration activities across
Castillo's existing portfolio.
Assets deemed to be core will be developed, potentially with the support of a
strategic partner, while assets deemed non-core will be divested.
NWQ COPPER PROJECT
Core Asset Identification
During the quarter as part of the strategic asset portfolio review, the
Company's NWQ Copper Project - situated in Mount Isa's copper-belt - was
identified as a core asset.
This classification acknowledges the NWQ Copper Project (see Figure 1) as an
asset that aligns with Castillo's future development plans.
Next Steps
The Board will be embarking on a campaign to deepen its understanding of the
20+ prospects across the tenure (excluding the Big One Deposit) ahead of
engaging with potential strategic partners.
As part of the review process, members of the geology team visited the
Boomerang and Josephine Prospects to assess their exploration potential. Both
have been interpreted as prospective for structurally controlled copper
mineralisation.
Historical Highlights
The historical highlights of these prospects are as follows:
Boomerang Prospect((1-4))
Mineralisation is hosted in the Surprise Creek Formation and is through to be
associated with secondary faulting related to the Mt Gordon Fault, a regional
NE trending structure.
In 1975, Dampier Mining conducted an exploration campaign that included
geological mapping, rock sampling and drilling of nine RAB holes, to delineate
a sandstone hosted copper oxide mineralisation over an 800m strike length.
Secondary copper staining was observed along the strike length.
Josephine Prospect((1-4))
( )
Occurs within a fault-bounded block of middle-lower Surprise Creek Formation.
The host rock consists of buff, brown and grey thin bedded fine feldspathic
and labile sandstone, ferruginous sandstone and micaceous siltstone.
Figure 1: NWQ Project Prospect Map
Field Trip and Rock Chip Sampling
The field trip was undertaken to complete a small program of rock chip
sampling (refer ASX Announcement dated 24 October 2023) taken across various
geological formations.
This preliminary work was undertaken to determine the prospectivity for copper
mineralisation and facilitate the next phase of a more systematic exploration
campaign if suitable targets are determined.
CORPORATE
Board changes: On 10 October 2023 Managing Director Dr Dennis Jensen resigned
from the Castillo Copper Board.
Rehabilitation Security Bonds
Rehabilitation Security and Bonds which will convert to cash within 12 months
totalled $311,000 at quarter end.
During the quarter $225,000 was paid to related parties of the Company
relating to executive and non-executive director fees and exploration
consulting fees paid to an entity controlled by a related party.
A summary of the exploration expenditure incurred during the quarter is set
out below:
Table 1: Summary of Exploration Expenditure
Asset Consulting fees Rates and mines departments fees Other
Cangai $37,000 - -
Broken Hill $58,000 - -
Mt Isa $56,000 - -
Zambia $17,000 $6,000 -
Total $168,000 $6,000 -
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and Corporate Broker) +44 (0)1483 413500
Nick Emerson
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
About Castillo Copper
Castillo Copper Limited is an Australian-based, Australian-focussed copper
exploration Company with a strategy to develop multi-commodity assets that
demonstrate future potential as an economic mining operation.
Through the application of disciplined and structured exploration and
analysis, Castillo Copper has identified assets deemed core to the Company's
sustained growth and is actively progressing these interests up the value
curve.
Current focus will be on advancing exploration activity at the Company's
wholly owned NWQ Project, situated in the copper-belt district approximately
150km north of Mt Isa in north-west Queensland.
Other interests include the Broken Hill Project in western New South Wales and
the Cangai Copper Mine in north-east New South Wales, as well as exploration
targets in Zambia.
Castillo Copper is listed on the LSE and ASX under the ticker "CCZ".
References
1) CCZ London Listing Prospectus - 28 July 2020
2) CCZ ASX Announcement - 17 October 2023
3) CCZ ASZ Announcement - 23 January 2023
4) Nowland, M. L. (2020-22). EPM 26462 Big Oxide North Annual
Report for period 29th August 2021 to 28th August 2022. Prepared by ROM
Resources for Castillo Copper Limited.
APPENDIX A: Key PROJECTS
Figure 2: West and East Zone - BHA Project, Broken Hill Region (Source: CCZ
Geology Team)
Figure 3: Zambia Copper-Belt Projects (Source: CCZ Geology Team)
Figure 4: NWQ Copper Project, Mt Isa Region (Source: CCZ Geology Team)
APPENDIX B: Interest in mining tenements held
Table 2: Jackaderry (Cangai), New England Orogen in NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EL8635 100% 100% -
EL8625 100% 100% -
EL8601 100% 100% -
Table 3: Broken Hill, located within a 20km radius of Broken Hill in NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EL8599 100% 100% -
EL8572 100% 100% -
EL 8434 100% 100% -
EL 8435 100% 100% -
Table 4: Mt Oxide, Mt Isa region in North West Queensland
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
EPM 26513 100% 100% -
EPM 26525 100% 100% -
EPM 26574 100% 100% -
EPM 26462 100% 100% -
EPM 27440 100% 100% -
Table 5: Zambia
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
24659-HQ-LEL (Mkushi) 100% 100% -
25195-HQ-LEL (Luanshya) 55% 55% -
25273-HQ-LEL (Luanshya) 55% 55% -
25261-HQ-LEL (Mwansa) 100% 100% -
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Castillo Copper Ltd
ABN Quarter ended ("current quarter")
52 137 606 476 31 December 2023
Consolidated statement of cash flows Current quarter Year to date (6 months)
$A'000
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs (381) (663)
1.3 Dividends received (see note 3)
1.4 Interest received 15 23
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Government grants and tax incentives
1.8 Other (provide details if material)
1.9 Net cash from / (used in) operating activities (366) (640)
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) exploration & evaluation (174) (501)
(e) investments
(f) other non-current assets
2.2 Proceeds from the disposal of:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) investments
(e) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing activities (174) (501)
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities
3.3 Proceeds from exercise of options
3.4 Transaction costs related to issues of equity securities or convertible debt
securities
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash from / (used in) financing activities - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 2,294 2,897
4.2 Net cash from / (used in) operating activities (item 1.9 above) (366) (640)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (174) (501)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held (7) (9)
4.6 Cash and cash equivalents at end of period 1,747 1,747
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 1,747 1,354
5.2 Call deposits - 940
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 1,747 2,294
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 100(1)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 125(2)
in item 2
(1)Comprises director's fees for the quarter.
(2)Comprises consulting fees paid to the Managing Director and exploration
expenditure paid to Field Crew Pty Ltd, a related entity of director David
Drakeley.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities
7.2 Credit standby arrangements
7.3 Other (please specify)
7.4 Total financing facilities
7.5 Unused financing facilities available at quarter end
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (366)
8.2 (Payments for exploration & evaluation classified as investing activities) (174)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (540)
8.4 Cash and cash equivalents at quarter end (item 4.6) 1,747
8.5 Unused finance facilities available at quarter end (item 7.5)
8.6 Total available funding (item 8.4 + item 8.5) 1,747
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 3.2
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: N/A
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: N/A
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: N/A
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 30 January 2024
Authorised by: The Board of Directors
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDUKSWRSKUAUARRecent news on Castillo Copper
See all newsREG - Castillo Copper Ltd - Completion of Sale of Broken Hill Licenses
AnnouncementREG - Castillo Copper Ltd - Initial and Final Director’s Interest Notice
AnnouncementREG - Castillo Copper Ltd - Half-year Financial Report
AnnouncementREG - Castillo Copper Ltd - Board Changes
AnnouncementREG - Castillo Copper Ltd - December 2023 Quarterly Activities Report
Announcement