REG - Castillo Copper Ltd - Half-year Financial Report
14/03/2024 12:00
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RNS Number : 9066G Castillo Copper Limited 14 March 2024
14 March 2024
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
Half-year Financial Report
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to announce the
financial report of the Group for the half-year ended 31 December 2023.
Directors
The names of directors who held office during or since the end of the
half-year and until the date of this report are as below. Directors were in
office for this entire period unless otherwise stated.
Gerrard (Ged) Hall Non-Executive Chairman
Dr Dennis Jensen Managing Director (resigned 10 October 2023)
David Drakeley Non-Executive Director (resigned 14 March 2024)
Jack Sedgwick Non-Executive Director (resigned 14 March 2024)
Joel Logan Non-Executive Director (appointed 14 March 2024)
Eduardo Robaina Non-Executive Director (appointed 14 March 2024)
Results
The loss after tax for the half-year ended 31 December 2023 was $1,197,257 (31
December 2022 loss of $625,672).
Review of Operations
During the financial period, the principal activity of the Group was mineral
exploration in eastern Australia.
The Group has four (4) exploration projects, including the North-West Copper
(NWQ) Project located in the copper-belt of Mt Isa, the Broken Hill Alliance
(BHA) Project situated near the world class silver-zinc-lead deposit in Broken
Hill, New South Wales, the historic Cangai Copper Mine in northern New South
Wales, and several assets within the copper-belt of Zambia.
An overview of significant activities carried out during the financial period
is presented below:
CANGAI MINERAL RESOURCE ESTIMATE
On 25 July 2023, Castillo Copper's geology team, in collaboration with a
specialist geological consultancy, generated an updated JORC (2012) compliant
Mineral Resource Estimate (MRE) for the Cangai Copper Mine.
This update includes an inferred in-situ resource of 4.4 million tonnes at a
copper (Cu) grade of 2.5% and an indicated resource from historic stockpiles
of 0.2 million tonnes at 1.35% Cu, amounting to approximately 114,000 tonnes
of contained copper metal, augmented further by zinc, gold, and silver credits
(Table 1)(1).
Table 1: 2023 Cangai Mineral Resource Estimate
Category Inferred Mass Cu Co Zn Au Ag Cu Co Zn Au Ag
(Tonnes) (%) (%) (%) (%) (%) (Tonnes) (Tonnes) (Tonnes) (Kg) (Kg)
Insitu Ox. 634,000 2.65 0.01 0.65 0.15 16.1 16,801 63 4,121 95 10,207
Insitu Fr. 3,773,000 2.48 0.01 0.55 0.31 15.2 93,570 226 20,752 1,170 57,350
Dumps Ox. 29,000 2.10 0.02 0.30 0.58 14.5 609 5 87 17 421
Total 4,436,000 2.50 0.01 0.60 0.29 15.3 110,980 294 24,960 1,282 67,978
Table 1: 2023 Cangai Mineral Resource Estimate (continued)
Category Indicated Mass Cu Co Zn Au Ag Cu Co Zn Au Ag
(Tonnes) (%) (%) (%) (%) (%) (Tonnes) (Tonnes) (Tonnes) (Kg) (Kg)
Dumps Ox. 199,000 1.35 0.02 1.9 0.1 4.6 2,687 48 3,781 20 915
Total 199,000 1.35 0.02 1.9 0.1 4.6 2,687 48 3,781 20 915
Total 4,635,000 2.45 0.01 0.60 0.28 14.9 113,667 342 28,741 1,301 68,893
Notes:
1. All resource tonnages rounded to the nearest 1,000 tonnes.
2. Refer to JORC Table 1 for details on data and estimation.
3. Insitu tonnages calculated as a guide only, no recovery
factor, loss or dilution considered.
In updating the Mineral Resource Estimate (MRE) from its 2017 figures (3.3
million tonnes at 3.35% Cu, totalling 108,000 tonnes), the geology team
incorporated data from reverse circulation and diamond core drilling
activities conducted between 2017 and 2018 and applied more conservative
assumptions to enhance the confidence of the revised 2023 MRE.
ASSET PORTFOLIO REVIEW
Castillo Copper's Board is of the opinion that the present tenement holdings
possess significant exploration potential. Consequently, during the reporting
period a comprehensive strategic review of the Group's exploration assets was
conducted.
Assets identified as core to the Company's strategy will be developed,
potentially in collaboration with a strategic partner. Assets considered
non-essential will be divested.
As part of the review process, members of the geology team visited the North
West Queensland Copper Project's Boomerang and Josephine Prospects to assess
their exploration potential. Both have been interpreted as prospective for
structurally controlled copper mineralisation.
The historical highlights of these prospects are as follows:
· Boomerang Prospect: Mineralisation is hosted in the Surprise Creek
Formation and is thought 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: 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.
During the site visits, twenty-one (21) rock chip samples were collected from
the Boomerang Prospect and another thirteen (13) from the outcrops at the
Josephine Prospect. Analysis conducted by ALS Brisbane on these samples
identified elevated copper levels up to 0.46% Cu at Boomerang. The findings
from the rock chip analysis will guide the direction of subsequent exploration
efforts.
With more than twenty (20) prospects within the NWQ Copper Project area, the
Group's Board approved the review's suggestion to designate the NWQ Copper
Project as a core asset.
CORPORATE BOARD CHANGES
On 9 October 2023, the Board announced the appointment of Mr Jack Sedgwick as
interim Executive Director. On 10 October 2023, Managing Director Dr Dennis
Jensen resigned from the Castillo Copper Board. Mr Sedgwick was tasked with
conducting the review of the Company's assets and realigning the strategic
direction of the Group.
Upon concluding the review, Mr Sedgwick transitioned from interim Executive
Director to that of Non-Executive Director, effective 15 December 2023.
The restructure is anticipated to lower the annual expenses of the Board,
underscoring the Company's commitment to maintaining cost efficiency and
focusing strategically on enhancing its exploration properties.
Events subsequent to period end
The following significant events occurred after 31 December 2023:
· On 11 January 2024, the Company announced it had executed a Tenement
Purchase Agreement with Rimfire Pacific Mining Limited (ASX: RIM), to sell an
unencumbered 100% of the Company's Exploration Licenses 8572 and 8599 which
lie adjacent to Rimfire's Bald Hill Cobalt prospect, 30 kilometres west of
Broken Hill, NSW.
· Consideration for the sale comprises $150,000 worth of RIM shares at
an issue price of $0.0186 per share, plus an additional $150,000 worth of RIM
shares at an issue price of $0.0279 per share, conditional on the RIM 5-day
volume weighted average share price being greater than $0.0279 at any time
after completion.
· On 14 March 2024, Mr David Drakeley and Mr Jack Sedgwick resigned as
Non-Executive Directors and Mr Joel Logan and Mr Eduardo Robaina were
appointed as Non-Executive Directors of the Company.
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".
COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results and Mineral
Resource Estimates for the Cangai Copper Mine is based on information compiled
or reviewed by Mr Mark Biggs. Mr Biggs is a director of ROM Resources, a
company which is a shareholder of Castillo Copper Limited. ROM Resources
provides ad hoc geological consultancy services to Castillo Copper Limited.
Mr Biggs is a member of the Australian Institute of Mining and Metallurgy
(member #107188) and has sufficient experience of relevance to the styles of
mineralisation and types of deposits under consideration, and to the
activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an
AusIMM Online Course Certificate in 2012 JORC Code Reporting. Mr Biggs also
consents to the inclusion in this report of the matters based on information
in the form and context in which it appears.
The information in this report that relates to Exploration Results for the NWQ
Project is based on and fairly represents information compiled by Mr Jeremy
Clark, a Competent Person who is a member of the AusIMM. Mr Clark is the sole
director of Lily Valley International Pty Ltd. Mr Clark has sufficient
experience that is relevant to the style of mineralisation and type of
deposits under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 edition of the Australasian Code
of Report of Exploration Results, Mineral Resources and Ore Reserves. Mr Clark
also consents to the inclusion in this report of the matters based on
information in the form and context in which it appears.
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive
Income
for the half-year ended 31 December 2023
Note 31 December 31 December
2023 2022
$ $
Interest revenue 22,850 3,453
Revenue 22,850 3,453
Listing and public company expenses (91,829) (76,956)
Accounting and audit expenses (65,090) (57,074)
Consulting and directors' fees (313,919) (250,113)
Impairment of exploration expenditure 4 (518,361) -
Other expenses 3 (230,908) (244,982)
Loss before income tax (1,197,257) (625,672)
Income tax expense - -
Loss after income tax (1,197,257) (625,672)
Other comprehensive (loss) / income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (4,953) 2,179
Total comprehensive loss for the half-year (1,202,210) (623,493)
Loss per share attributable to owners of Castillo Copper Limited
Basic loss per share (cents per share) (0.09) (0.05)
Diluted loss per share (cents per share) (0.09) (0.05)
The accompanying notes form part of these financial statements.
Condensed Consolidated Statement of Financial Position
as at 31 December 2023
31 December
Note 2023 30 June
$ 2023
$
Assets
Current Assets
Cash and cash equivalents 1,747,998 2,897,611
Assets held for sale 4 300,000 -
Other receivables 120,979 78,845
Total Current Assets 2,168,977 2,976,456
Non-Current Assets
Other receivables 486,961 486,961
Deferred exploration and evaluation expenditure 4 8,297,282 8,736,198
Total Non-Current Assets 8,784,243 9,223,159
Total Assets 10,953,220 12,199,615
Current Liabilities
Trade and other payables 84,161 128,346
Total Current Liabilities 84,161 128,346
Total Liabilities 84,161 128,346
Net Assets 10,869,059 12,071,269
Equity
Issued capital 5 35,964,396 35,964,396
Reserves 4,076,782 4,081,735
Accumulated losses (29,172,119) (27,974,862)
Total Equity 10,869,059 12,071,269
The accompanying notes form part of these financial statements.
Condensed Consolidated Statement of Changes in Equity
for the half-year ended 31 December 2023
Note Issued Capital Share-Based Payment Reserve Foreign Currency Translation Reserve Accumulated Losses Total
$ $ $ $ $
Balance as at 1 July 2022 35,964,396 4,230,962 (150,586) (21,032,634) 19,012,138
Loss for the half-year - - - (625,672) (625,672)
Other comprehensive income - - 2,179 - 2,179
Total comprehensive loss for the half-year - - 2,179 (625,672) (623,493)
Balance at 31 December 2022 35,964,396 4,230,962 (148,407) (21,658,306) 18,388,645
Balance as at 1 July 2023 35,964,396 4,230,962 (149,227) (27,974,862) 12,071,269
Loss for the half-year - - - (1,197,257) (1,197,257)
Other comprehensive income - - (4,953) - (4,953)
Total comprehensive loss for the half-year - - (4,953) (1,197,257) (1,202,210)
Balance at 31 December 2023 5 35,964,396 4,230,962 (154,180) (29,172,119) 10,869,059
The accompanying notes form part of these financial statements.
Condensed Consolidated Statement of Cash Flows
for the half-year ended 31 December 2023
31 December 31 December
2023 2022
$ $
Cash flows from operating activities
Payments to suppliers and employees (654,600) (732,607)
Interest received 22,850 3,453
Interest paid - (1,936)
Net cash outflow from operating activities (631,750) (731,090)
Cash flows from investing activities
Tenement expenditure guarantees - (82,000)
Payments for exploration and evaluation expenditure (509,356) (1,113,264)
Net cash outflow from investing activities (509,356) (1,195,264)
Cash flows from financing activities
Net cash inflow from financing activities - -
Net decrease in cash and cash equivalents (1,141,106) (1,926,354)
Cash and cash equivalents at 1 July 2,897,611 5,754,049
Effect of exchange rate fluctuations on cash held (8,507) 20,636
Cash and cash equivalents at 31 December 1,747,998 3,848,331
The accompanying notes form part of these financial statements.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Corporate Information
This general purpose financial report of Castillo Copper Limited and its
subsidiaries (the Group) for the half-year ended 31 December 2023 was
authorised for issue in accordance with a resolution of the directors on 14
March 2024.
Castillo Copper Limited is a company limited by shares incorporated in
Australia whose shares are publicly traded on the Australian Securities
Exchange and the London Stock Exchange.
The nature of the operations and principal activities of the Group are
described in the Directors' Report.
Basis of Preparation
This financial report for the half-year ended 31 December 2023 has been
prepared in accordance with AASB 134 Interim Financial Reporting and the
Corporations Act 2001. The Group is a for profit entity for financial
reporting purposes under Australian Accounting Standards. Compliance with AASB
134 ensures compliance with IAS 34 Interim Financial Reporting.
These half-year financial statements do not include all notes of the type
normally included within the annual financial statements and therefore cannot
be expected to provide as full an understanding of the financial performance,
financial position and financing and investing activities of the Group as the
full financial statements.
It is recommended that the half-year financial statements be read in
conjunction with the annual financial statements for the year ended 30 June
2023 and considered together with any public announcements made by Castillo
Copper Limited during the half-year ended 31 December 2023 in accordance with
the continuous disclosure obligations of the ASX listing rules.
For the purpose of preparing the half-year report, the half-year has been
treated as a discrete reporting period. The accounting policies and methods of
computation adopted are consistent with those of the previous financial year.
These accounting policies are consistent with Australian Accounting Standards
and with International Financial Reporting Standards.
The consolidated financial statements have been prepared on the basis of
historical cost.
Going Concern
This report has been prepared on the going concern basis, which contemplates
the continuity of normal business activity and the realisation of assets and
settlement of liabilities in the normal course of business.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
The Group incurred a net loss for the period ended 31 December 2023 of
$1,197,257 and a net cash outflow from operating activities of $631,750. At 31
December 2023, the Group had a net asset position of $10,869,059 and working
capital of $2,084,814. The cash and cash equivalents balance at 31 December
2023 was $1,747,998.
Notwithstanding these results, the Directors believe that the Company will be
able to continue as a going concern and as a result the financial statements
have been prepared on a going concern basis. The interim financial report has
been prepared on the assumption that the Group is a going concern for the
following reasons:
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
· the ability of the Group to scale back parts of its operations
and reduce costs if required;
· the Board is of the opinion that the Group has, or shall have
access to, sufficient funds to meet the planned corporate activities and
working capital requirements; and
· as the Group is an ASX-listed entity, the Group has the ability
to raise additional funds, if required.
In the event that the Group is unable to achieve the actions noted above,
there is a material uncertainty that may cast significant doubt as to the
Group's ability to continue as a going concern, and it may be required to
realise its assets at amounts different to those currently recognised, settle
liabilities other than in the ordinary course of business and make provisions
for other costs which may arise as a result of cessation or curtailment of
normal business operations.
The directors have reviewed the Group's financial position and are of the
opinion that the use of the going concern basis of accounting is appropriate.
New and amending Accounting Standards and Interpretations
In the half-year ended 31 December 2023, the Directors have reviewed all of
the new and revised Standards and Interpretations issued by the AASB that are
relevant to the Group's operations and effective for annual reporting periods
beginning on or after 1 July 2023. As a result of this review, the Directors
have determined that there is no material impact of the new and revised
Standards and Interpretations on the Group and, therefore, no material change
is necessary to Group accounting policies.
The Directors have also reviewed all new Standards and Interpretations that
have been issued but are not yet effective for the half-year ended 31 December
2023. As a result of this review the Directors have determined that there is
no impact, material or otherwise, of the new and revised Standards and
Interpretations on the Group's business and, therefore, no change necessary to
the Group accounting policies.
NOTE 2: SEGMENT REPORTING
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
Management has determined the operating segments based on the reports reviewed
by the Board of Directors that are used to make strategic decisions. The
entity has four geographical segments being exploration in Northwest
Queensland (NWQ), New South Wales (Cangai), New South Wales (Broken Hill) and
Zambia. Revenue attributable to all segments is immaterial. Allocation of
asset, liabilities, income and expenses to each segment is shown below:
December 2023 NWQ (QLD) Cangai (NSW) Broken Hill (NSW) Zambia Unallocated Total
Segment assets and liabilities $ $ $ $ $ $
Current assets - - 300,000 - 1,868,977 2,168,977
Non-current assets 6,672,992 321,100 1,102,026 688,004 121 8,784,243
Current liabilities - - - - (84,161) (84,161)
Segment income and expenses
Interest income - - - - 22,850 22,850
Other expenses - (185,891) (203,145) (154,738) (676,333) (1,220,107)
Total - (185,891) (203,145) (154,738) (653,483) (1,197,257)
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
NOTE 2: SEGMENT REPORTING (CONTINUED)
NWQ (QLD) Cangai (NSW) Broken Hill (NSW) Zambia Unallocated Total
December 2022
Segment assets and liabilities $ $ $ $ $ $
Current assets - - - - 4,061,504 4,061,504
Non-current assets 6,416,742 5,498,371 1,374,496 1,076,912 121 14,366,642
Current liabilities - - - - (39,501) (39,501)
Segment income and expenses
Interest income - - - - 3,453 3,453
Interest expense - - - - (1,936) (1,936)
Other expenses - - - - (627,189) (627,189)
Total - - - - (625,672) (625,672)
NOTE 3: OTHER EXPENSES
Included in other expenses are the following items:
6 months to 6 months to 31 December
2022
31 December 2023
$
$
Insurance 37,580 61,299
Interest expenses - 1,936
Marketing and investor relations 181,425 175,461
Foreign exchange losses / (gains) 8,505 (20,589)
Legal fees 4,304 7,368
Travel and accommodation 26 2,948
Other expenses (932) 16,559
230,908 244,982
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
NOTE 4: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase: 6 months to Year ended
31 December 2023 30 June
$
2023
$
Opening balance 8,736,198 12,899,486
Exploration and evaluation expenditure during the period 379,445 1,509,584
Impairment(1,2) (518,361) (5,672,872)
Re-assessed as assets held for sale(2) (300,000) -
Closing balance 8,297,282 8,736,198
The ultimate recoupment of costs carried forward as exploration expenditure is
dependent on the successful development and commercial exploitation or sale of
the respective areas of interest.
NOTE 4: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
(1) At each reporting date, the Group undertakes an assessment of the carrying
amount of its exploration and evaluation assets. As at 31 December 2023, the
Group identified indicators of impairment on certain exploration and
evaluation assets under AASB 6 Exploration and Evaluation of Mineral
Resources. As a result of this review, an impairment charge of $315,216 was
recognised in the statement of profit or loss and other comprehensive income
in relation to areas of interest where no future exploration and evaluation
activities are expected.
(2) On 11 January 2024, the Company announced it had executed a Tenement
Purchase Agreement with Rimfire Pacific Mining Limited (ASX: RIM), to sell an
unencumbered 100% of the Company's Exploration Licenses 8572 and 8599 which
lie adjacent to Rimfire's Bald Hill Cobalt prospect, 30 kilometres west of
Broken Hill, NSW. As a result, these assets have been assessed as held for
sale and impaired down to fair value less cost to sell at 31 December 2023,
resulting in impairment charge of $203,145 recognised in the statement of
profit or loss and other comprehensive income.
NOTE 5: ISSUED CAPITAL
6 months to 31 December 2023 Year ended 30 June
$
2023
$
Issued and paid up capital
Issued and fully paid 35,964,396 35,964,396
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
6 months to Year ended
31 December 2023 30 June 2023
Number of shares $ Number of shares $
Movements in issued capital
Opening balance 1,299,505,355 35,964,396 1,299,505,355 35,964,396
Closing balance 1,299,505,355 35,964,396 1,299,505,355 35,964,396
Share options
At 31 December 2023 there were 11,000,000 (30 June 2023: 132,699,971) unlisted
options with various exercise prices and expiry dates and 163,439,781 listed
options (ASX:CCZOA, CCZOB & CCZOB), with various exercise prices and
expiry dates.
The following share-based payment arrangements were in place during the
period:
NOTE 5: ISSUED CAPITAL (CONTINUED)
Series Number Grant date Expiry date Exercise price Fair value at grant date Vesting date
$
1 14,285,714 15 June 2021 31 July 2024 $0.08 $0.0218 15 June 2021
2 2,955,665 16 June 2021 1 August 2024 £0.044 $0.0205 16 June 2021
3 2,418,044 5 August 2021 31 July 2024 $0.08 $0.007 5 August 2021
4 462,379 4 August 2021 1 August 2024 £0.044 $0.0168 4 August 2021
5 4,000,000 27 October 2021 31 July 2024 $0.08 $0.007 27 October 2021
6 3,000,000 30 November 2021 31 July 2024 $0.08 $0.010 30 November 2021
7 8,000,000 1 February 2022 31 January 2025 $0.08 $0.007 1 February 2022
During the half-year 121,699,971 options expired, with various exercise prices
and expiry dates.
No options were exercised during the period.
(a) Weighted average fair value
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
The fair value of the equity-settled unlisted options granted in prior periods
was estimated as at the date of grant using the Black and Scholes model taking
into account the terms and conditions upon which they were granted, as
follows:
Series
6 7
Expected volatility (%) 99 100
Risk-free interest rate (%) 0.87 1.21
Expected life of option (years) 2.7 3
Exercise price (cents/pence) 8 8
Grant date share price (cents/pence) 3.4 2.6
The expected life of the options is based on historical data and is not
necessarily indicative of exercise patterns that may occur. The expected
volatility reflects the assumption that the historical volatility is
indicative of future trends, which may also not necessarily be the actual
outcome. No other features of options granted were incorporated into the
measurement of fair value.
Performance Shares
At 31 December 2023 there were 46,875,000 Class A performance shares and
46,875,000 Class B performance shares on issue in relation to the Zambian
tenements held by Zed Copper Pty Ltd.
46,875,000 Class A performance shares
Conditions precedent - converting to an equal number of CCZ shares on
delineation of a JORC resource of 200,000 tonnes of contained copper at a
minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement.
46,875,000 Class B performance shares
Conditions precedent - converting to an equal number CCZ shares on completion
of a preliminary feasibility study demonstrating an internal rate of return
greater than 25% within 5 years of execution of the Share Sale Agreement
NOTE 6: CONTINGENT LIABILITIES
There has been no change in contingent liabilities since the last annual
reporting date.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 31 December 2023
NOTE 7: SUBSEQUENT EVENTS
The following significant events occurred after 31 December 2023:
· On 11 January 2024, the Company announced it had executed a
Tenement Purchase Agreement with Rimfire Pacific Mining Limited (ASX: RIM), to
sell an unencumbered 100% of the Company's Exploration Licenses 8572 and 8599
which lie adjacent to Rimfire's Bald Hill Cobalt prospect, 30 kilometres west
of Broken Hill, NSW.
· Consideration for the sale comprises $150,000 worth of RIM shares
at an issue price of $0.0186 per share, plus an additional $150,000 worth of
RIM shares at an issue price of $0.0279 per share, conditional on the RIM
5-day volume weighted average share price being greater than $0.0279 at any
time after completion.
· On 14 March 2024, Mr David Drakeley and Mr Jack Sedgwick resigned
as Non-Executive Directors and Mr Joel Logan and Mr Eduardo Robaina were
appointed as Non-Executive Directors of the Company.
NOTE 8: FINANCIAL INSTRUMENTS
The Group has a number of financial instruments which are not measured at fair
value on a recurring basis. The carrying amount of these financial instruments
approximates their fair values.
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Castillo Copper Limited
(the 'Company'), the directors of the Company declare that:
1. The financial statements and notes are in accordance with
the Corporations Act 2001, including:
a. complying with Accounting Standard
AASB 134: Interim Financial Reporting; the Corporations Regulations 2001 and
other mandatory professional reporting requirements; and
b. giving a true and fair view of the
Group's financial position as at 31 December 2023 and of its performance for
the half-year ended on that date.
2. In the directors' opinion there are reasonable grounds to
believe that the Company will be able to pay its debts as and when they become
due and payable.
Gerrard (Ged) Hall
Non-Executive Chairman
14 March 2024
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. END IR FZLFFZXLZBBVRecent news on Castillo Copper
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