Castillo Copper's strategic sale to Infinity Mining

Castillo Copper Ltd (ASX:CCZ) has entered into a conditional agreement to sell the Cangai Copper Mine tenements in northern New South Wales to ASX-listed Infinity Mining Limited (IMI). Under the terms of the proposed transaction, CCZ will receive 40 million IMI shares and 20 million IMI 5-year options, subject to due diligence and key approvals.

Chairman's perspective on the strategic sale

The strategic sale of the Cangai Copper Mine tenement package to Infinity Mining is an excellent outcome, as it is the second such transaction which unlocks value this calendar year. Moreover, it validates the Board's strategy on optimising the non-core asset portfolio and enables resources to be channelled into developing the core NWQ Copper Project in the Mr Isa copper-belt. The Board is highly confident Infinity Mining's team has the capability to fully develop the Cangai Copper Mine tenements which in turn has the potential to generate material value for stakeholders given the equity position CCZ will hold post-transaction close.

Unlocking value and future prospects

Castillo Copper's strategic sale of the Cangai Copper Mine tenements to Infinity Mining aligns with its goal of optimizing the non-core asset portfolio. This move allows the company to focus on advancing the core NWQ Copper Project in the Mt Isa copper-belt. The transaction positions CCZ as a significant shareholder in IMI, providing an opportunity to participate in the value created from advancing the Cangai Copper Mine tenements. Looking ahead, with the level of consolidation across the global copper sector gaining momentum, the Board intends to hold the remaining non-core assets until the right development partners are secured. This strategic approach aims to unlock value for shareholders and drive the company's future growth and success.