Castillo Copper grants option to sell Zambian projects for £2.25 million
“The board is delighted to have granted London-based Hyperion Copper the option to acquire the Zambia Projects … 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,” said MD.
Castillo Copper Ltd has awarded London-based company Hyperion Copper a 12-month option to acquire its wholly-owned subsidiary Zed Copper, which holds four assets in the Zambian copper belt, including the advanced Luanshya and Mkushi projects.
Under the terms of the agreement, Hyperion will pay a non-refundable fee of A$142,000 (US$100,000) to secure the 12-month exclusive option and will issue a further £2.25 million (~A$4 million) in Hyperion shares should it wish to exercise its option to acquire 100% of Zed Copper.
If Hyperion then achieves a global mineral resource estimate of 200,000 tonnes of contained copper, Castillo will receive a further £1.5 million (~A$2.7 million) in Hyperion shares.
Deal holds “strategic priority”
“Securing a development partner for our Zambia Projects has been a strategic priority to ensure optimal value creation,” Castillo Copper managing director Dr Dennis Jensen said.
“As such, the board is delighted to have granted London-based Hyperion Copper the option to acquire the Zambia Projects.
“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.”
Hyperion – which owns a gold mining project in Burkina Faso – plans to list on the AIM market of the London Stock Exchange in the second half of this year, intending to raise funds to develop its African projects.
Under the terms of the acquisition agreement, CCZ would hold no less than 25% of Hyperion’s post-listing shares, granting Castillo the right to nominate a director to Hyperion’s board.
CCZ’s board has expressed its enthusiasm for the outcome, which it believes will de-risk the development of the Zambian projects while maintaining exposure to their potential through its shareholding in Hyperion.
The parties are currently preparing a Definitive Acquisition Agreement.
