- Castillo Copper (CCZ) grants Hyperion Copper a 12-month option to acquire its subsidiary, Zed, for £3.75 million (A$6.6 million)
- Once it completes due diligence and satisfies the relevant conditions, Hyperion will acquire four of Zed’s Zambian assets, including the “prime” Luanshya and Mkushi projects
- Castillo says this is an “excellent outcome” for stakeholders as it secures a development partner who’s committed to develop the projects within Zambia’s prolific copper belt
- Furthermore, Hyperion is planning to list on the London Stock Exchange later this year which will see Castillo benefit from retaining its shareholding post-listing
- CCZ shares last traded at 1.3 cents on June 21
Castillo Copper (CCZ) has granted Hyperion Copper a 12-month option to acquire its subsidiary, Zed, for £3.75 million (A$6.6 million).
Zed owns four projects in Zambia’s copper belt, including the Luanshya, Mkushi, Mwansa, and Lumwana projects, which is the second largest copper producer in Africa.
Based in London, Hyperion is positioning itself as an Africa-focused copper and gold explorer and currently owns a 100 per cent interest in the Yansse gold project in Burkina Faso.
Castillo Copper said this option agreement is an “excellent outcome” for stakeholders as it secures a partner who’s committed to fully develop the Zambian projects. Furthermore, Hyperion is planning to list on the London Stock Exchange later this year which will see Castillo accrue some benefits from retaining its shareholding.
CCZ Managing Director Dr Dennis Jensen said he was pleased to secure a development partner for these assets as it has been a “strategic priority to ensure optimal value creation.”
“From the board’s perspective, we now have a partner who will fund all future development work, whilst benefits accrue to CCZ via retaining the shareholding in Hyperion Copper post its AIM listing,”
Under the option agreement, Hyperion will pay Castillo a US$100,000 option fee for the exclusive option to fully acquire Zed and its projects. Once it completes due diligence and exercises its option, Hyperion will pay £2.25 million worth of shares which must represent no less than 25 per cent of the enlarged share capital upon its listing on the LSE’s AIM market.
The companies are currently preparing a definitive acquisition agreement and, within five years of executing this and delivering a global mineral resource estimate of 200,000 tonnes of copper metal from the Zambian projects, Hyperion will issue CCZ £1.5 million in shares.
Hyperion has also agreed to pay Zed vendors a two per cent net smelter return royalty on production from the Zambian projects.
CCZ shares last traded at 1.3 cents on June 21.