Castillo Copper has signed a binding agreement to acquire an 85% interest in the Harts Range Niobium, Uranium and Heavy Rare Earths Project in Australia's Northern Territory.
This deal involves an earn-in arrangement with Audax Holdings.
It will see Castillo Copper purchasing all ordinary shares in Audax Holdings from its shareholders.
The company has made a cash payment of $35,000 (A$52,335) to Audax for exclusive rights to conduct due diligence on the project until 20 November 2024.
Additionally, Castillo Copper is issuing 145.5 million fully paid ordinary shares to the Audax Vendors at a deemed price of $0.005 per share.
These shares will be held in a six-month voluntary escrow period.
The transaction's completion is contingent upon fulfilling all necessary conditions including due diligence and required approvals.
Upon finalising the deal, Audax will enter a JV with Barfuss Corporation concerning the project's tenements.
The Harts Range Project spans a 12km corridor and includes five prospects: Cusp, Bobs, Bobs West, Thorium Anomaly and Niobium Anomaly.
Historical assays have revealed high percentages of niobium, uranium and total REEs.
Castillo Copper has conducted an initial field trip to the site, verifying the presence of critical minerals through outcropping pegmatites and field observations.
The project benefits from year-round accessibility via well-maintained sealed roads.
A comprehensive exploration strategy has been prepared by Castillo Copper for the Harts Range Project, with the objective of identifying priority drilling targets.
The exploration will encompass extensive surface sampling, geophysical surveys and bulk sample collection for metallurgical testing.
The company has also stated its intention to continue advancing the NWQ Copper Project, potentially with a development partner, and to sell its remaining copper assets, the BHA West Project in New South Wales and the Mkushi Project in Zambia.
Castillo Copper chairman Ged Hall said: “The Board is confident its search for a transformational asset has been achieved with the Harts Range Niobium, Uranium and Heavy Rare Earth Project.
“This acquisition has compelling exploration potential that could enhance shareholder value materially, as development work gets under way.
“Moreover, this is especially apparent considering favourable global dynamics enabling several other ASX [Australian Securities Exchange] explorers in the niobium and uranium space to deliver successful ventures.”
Recently, Castillo Copper announced the conditional sale of the Cangai Copper Mine tenements in New South Wales, Australia, to Infinity Mining.
