Castillo Copper (ASX:CCZ) has signed a binding term sheet with Audax Holdings, to obtain an 85% interest in the Harts Range Project in the Northern Territory, which is prospective for niobium, uranium, and heavy rare earths.
Sitting across a 12km corridor, the Harts Range Project includes five prospects dubbed Cusp, Bobs, Bobs West, Thorium Anomaly, and Niobium Anomaly. Historical rock chip assays have recorded up to 23.2% niobium, 12.7% uranium, and 12.7% total rare earth elements.
Under the agreement, Castillo paid $35,000 to Audax for an exclusive right to conduct due diligence activities. Castillo will also issue 145.5 million shares at $0.005 per share, which will be subject to a six-month voluntary escrow period.
The transaction’s completion is subject to completing all necessary conditions, such as due diligence, Audax securing any approvals required, as well as any third-party approvals.
Upon completion, Audax will form a joint venture with another privately held company, Barfuss Corporation, in relation to the tenements,
Chairman Ged Hall says this acquisition has “compelling” exploration potential.
“The board is confident its search for a transformational asset has been achieved with the Harts Range Niobium, Uranium, and Heavy Rare Earths Project,” he says.
“Moreover, this is especially apparent considering favourable global dynamics enabling several other ASX explorers in the niobium and uranium space to deliver successful ventures.”
Castillo, which has a market capitalisation of $9 million, has completed an inaugural field trip to the project as part of preliminary due diligence, noting multiple outcropping pegmatites and field observations which appear to confirm previous surface sampling work for critical minerals.
The company adds the project is also readily accessible most of the year via sealed roads that appear to be well-maintained.
Castillo has prepared a systematic and rigorous exploration strategy for the Harts Range Project that aims to generate priority targets for drill testing.
The exploration activities will include comprehensive surface sampling, geophysical surveys, and bulk sample collection for metallurgical testing.
Following today’s announcement, Castillo’s share price increased 14.28% to $0.008 as of 12.15pm AEDT.
Castillo will continue with previously announced plans to advance the NWQ Copper Project, possibly with a development partner. It will also plot the sale of two remaining copper assets, namely the BHA West Project in New South Wales and Mkushi Project in Zambia.
Castillo Copper is an Australia-based explorer focused on developing multi-commodity assets that show future potential as an economic mining operation.
Write to Aaliyah Rogan at Mining.com.au
Images: Castillo Copper
