PERTH (miningweekly.com) – ASX-listed Castillo Copper is considering divestment strategies for its Broken Hill asset, including a possible spin-off and potential London or Australian listing.
“The resurgence of interest in the Broken Hill region is timely, as it provides an excellent opportunity for Castillo Copper to optimise the Broken Hill Alliance project and create value for shareholders,” said MD Simon Paull.
“Moreover, the ground is under-explored, yet highly prospective for Broken Hill type and iron oxide/copper/gold mineralisation, with multiple drill-test targets already identified.”
The Broken Hill Alliance project comprises a sizeable footprint that is proximal to the Broken Hill silver/lead/zinc deposit, and fellow-listed Cobalt Blue’s Big Hill and Pyrite Hill tenements.
Castillo Copper is now liaising with UK corporate advisor SI Capital on the optimal way to move the proposed corporate transaction forward.
The company told shareholders on Tuesday that the board believed that divestment strategies for the Broken Hill assets were an optimal way to create incremental value, while freeing up resources to channel more effort into developing the core Mt Oxide project, in Queensland.