Castle Minerals Acquires Mineralis to Expand Gold Exploration in Côte d’Ivoire

What's Happening?

Castle Minerals has executed a binding term sheet to acquire Mineralis, a UK-incorporated company, from Mineral Holdings. This acquisition includes the rights to acquire 90% of seven permits in Côte d’Ivoire, West Africa. As part of the deal, Castle will issue 5.25 million shares and 9 million unlisted options, exercisable at $0.12, expiring on May 31, 2028. Additionally, Castle will issue 15 million performance rights upon achieving certain milestones. The company plans to raise $3.3 million through a placement at $0.06 per share to fund initial exploration phases in Côte d’Ivoire and Ghana. Euroz Hartleys will act as the lead manager for the placement. Castle intends to conduct ground mapping, sampling, geophysical, and geochemical studies to generate drill targets for the Côte d’Ivoire projects.

Why It's Important?

The acquisition of Mineralis and the subsequent exploration activities in Côte d’Ivoire represent a strategic expansion for Castle Minerals, a company focused on gold discoveries in West Africa. This move is significant as it provides Castle with a foothold in a new country, potentially increasing its resource base and enhancing shareholder value. The exploration efforts could lead to new gold discoveries, contributing to the economic development of the region and offering potential returns for investors. The additional funding and new leadership team are expected to drive intensive exploration activities, which could result in significant news flow and operational developments through 2025 and 2026.

What's Next?

Castle Minerals plans to conduct extensive exploration activities, including auger drilling and follow-up drill programs at the Kpali and Kandia projects in Ghana. The company aims to achieve certain milestones to unlock performance rights and further payments to Mineralis. The exploration results will likely influence Castle’s strategic decisions and potential expansion plans in West Africa. Stakeholders, including investors and local communities, will be closely monitoring the outcomes of these exploration activities.