Castillo Copper : Proposed issue of Securities - CCZ

Announcement Summary

Entity name

CASTILLO COPPER LIMITED

Announcement Type

New announcement

Date of this announcement Tuesday June 23, 2020

The Proposed issue is:

A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issueMaximum Number of

ASX +Security Code	+Security Description	+securities to be issued
CCZAA	OPTION EXPIRING VARIOUS DATES EX VARIOUS	104,454,545
PRICES
CCZ	ORDINARY FULLY PAID	95,454,545
Proposed +issue date
Tuesday June 30, 2020

Refer to next page for full details of the announcementPart 1 - Entity and announcement details

1.1 Name of +Entity CASTILLO COPPER LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type ABN

1.3 ASX issuer code CCZ

1.4 The announcement isNew announcement

1.5 Date of this announcement Tuesday June 23, 2020

1.6 The Proposed issue is:

A placement or other type of issue

Registration Number 52137606476

Part 7 - Details of proposed placement or other issuePart 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue?+Security holder approval

Court approval

Lodgement of court order with +ASICACCC approval

FIRB approval

Another approval/condition external to the entityNo

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?

Existing class

Details of +securities proposed to be issued

ASX +Security Code and Description

CCZ : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

95,454,545

Purpose of the issue

Will the proposed issue of this +security include an offer of attaching +securities?

Yes

To fund Mt Oxide exploration work and general working capital purposes

Offer price details for retail security holders

In what currency is the cash	What is the issue price per
consideration being paid?	+security?
AUD - Australian Dollar	AUD 0.02200

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

Yes

Oversubscription & Scale back details

May a scale back be applied to this event?

No

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)?

Existing class

Attaching +Security - Existing class (additional +securities in a class that is already quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ASX +Security Code and Description

CCZAA : OPTION EXPIRING VARIOUS DATES EX VARIOUS PRICES

Maximum Number of +securities proposed to be issued

104,454,545

Offer price details for retail security holders

In what currency is the cash consideration being paid? What is the issue price per +security?

AUD - Australian Dollar

AUD

Oversubscription & Scale back details

May a scale back be applied to this event?

No

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

Yes

Part 7C - Timetable

7C.1 Proposed +issue date

Tuesday June 30, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1?

No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1?

Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

104,454,545 unlisted options, expiring 30 June 2023 @ $0.05 12,935,940 ordinary shares

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)?

Yes

7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

82,518,605 ordinary shares

7D.1c ( ii ) Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer under a +security purchase plan in which existing ordinary +security holders would have been eligible to participate

Due to current market volatility, the Company formed the view that a placement was superior to an entitlement offer as it could be completed faster, provided certainty over the amount to be raised with fewer compliance costs

• 7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue?

  No

• 7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules?

  No

• 7D.4 Will any of the +securities to be issued be subject to +voluntary escrow?

No

Part 7E - Fees and expenses

• 7E.1 Will there be a lead manager or broker to the proposed issue?

  No

• 7E.2 Is the proposed issue to be underwritten?

No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue