Castle Minerals Limited (ASX: CDT) ('Castle' or the 'Company') advises that it has entered into an agreement to raise $487,500 through the issue of 48,750,000 new fully paid ordinary shares being the shortfall pursuant to the Company's Share Purchase Plan ('SPP') ('SPP Shortfall'), on a best endeavours basis.
On the same terms as the SPP, applicants will be offered one (1) option for every two (2) shares issued under the SPP Shortfall ('Options Offer'). Each option will be exercisable for one share at an exercise price of $0.018 and will expire on 7 January 2025. The SPP closed at 5.00pm (WST) on 16 October 2023.
The Company received valid applications from 106 eligible shareholders for 51,250,000 new fully paid ordinary shares raising $512,500 before costs. The total proceeds from the SPP and SPP Shortfall will be $1,000,000.
The SPP shortfall shares will be issued as follows: 34,000,000 new fully paid ordinary shares will be issued immediately pursuant to the Company's current capacity under ASX Listing Rule 7.1 and 14,750,000 new fully paid ordinary shares will be issued, subject to the renewal of the Company's capacity to issue securities pursuant to ASX Listing Rules 7.1 and 7.1A at the Company's Annual General Meeting to be held on 10 November 2023 ('AGM')
The Options Offer is a separate offer and will be made under a separate prospectus. The offer of these options is subject to the renewal of the Company's capacity to issue securities pursuant to ASX Listing Rules 7.1 and 7.1A, and the approval of the SPP options, at the AGM. The options are intended to be quoted on the ASX and remain subject to satisfaction of certain conditions set by ASX. A timetable for the issue of a prospectus and listing of the options will be advised following the AGM.
Use of Funds
The proceeds raised pursuant to the SPP Shortfall will be used to support the continued fast-tracking of the flagship Kambale Graphite Project. This is aimed to coincide with an anticipated increase in demand for natural graphite concentrates, especially outside of China, to be used in the manufacture of anodes for batteries used in electric vehicles ('EVs') and stationary power storage units as well as a range of consumer appliances. Worldwide sales of EVs have been increasing markedly and are expected to continue for the remainder of this decade and well into the next. China produces 95% of the world's Battery Anode Material creating a very high dependence on it by nonChinese anode, EV battery and EV vehicle manufacturers. This dependence has seen billions of dollars being directed by the US, EU and other countries towards establishing independent, secure, reliable supply chains of Critical Minerals, including graphite and graphite derivative products. In regards specifically to graphite, concerns around this dependence on China was heightened recently when China announced temporary curbs on the grant of export licences for natural graphite, synthetic graphite and other graphite products.
Additionally, Castle has interests in several Critical Metals and gold projects in Western Australia and Ghana which it has been incubating to a stage where advanced targets have been defined and they can be farmed-out to third parties with Castle retaining an interest in any upside. The placement of the SPP Shortfall was undertaken by Melbourne-based, Ignite Equity Pty Ltd who will receive a fee of 6% of the SPP Shortfall proceeds issued and an issue of 3,656,250 options on the same terms as the Options Offer.
Contact:
Stephen Stone
Managing Director
Tel: +61 (0)418 804 564
Email: stone@castleminerals.com
About Castle Minerals Limited
Castle Minerals Limited is an Australian Securities Exchange (ASX: CDT) listed and Perth, Western Australia headquartered company with interests in several projects in Ghana and Western Australia that are prospective for Battery Metals (graphite and lithium), base metals (zinc, lead and copper) and gold. In Ghana, West Africa, the emerging flagship Kambale Graphite Project owned by 100% Ghanaian subsidiary, Kambale Graphite Limited, is located in the country's Upper West region. In the same region, Castle's 100% owned Ghanaian subsidiary, Carlie Mining Ltd, holds a 2,686km2 tenure position encompassing large tracts of highly prospective Birimian geological terrane, the host to many of West Africa's and Ghana's multi-million-ounce gold mines. It has delineated several advanced gold exploration targets including at Kpali, Bundi and Kandia. Castle also retains a 4% net smelter precious metal royalty over the Julie West licence, a key component of Azumah Resources Limited's Wa Gold Project, Upper West region, Ghana. In Western Australia, The Earaheedy Basin project comprises the Withnell and Terra Rossa subprojects. The Withnell licence is strategically located adjacent to the evolving World-Class ChinookMagazine zinc-lead project of Rumble Resources Ltd (ASX: RTR) and north of the Strickland Metals Limited (ASX: STK) Iroquois prospect. The Terra Rossa licences have additional prospectivity for copper.
The Beasley Creek project is prospective for gold and lithium and lies on the northern flanks of the Rocklea Dome in the southern Pilbara. The Success Dome project lies in the Ashburton structural corridor midway between the Paulsen's and Ashburton gold deposits and is prospective for gold and base metals. The Polelle project, 7km southeast of the operating Bluebird gold mine near Meekatharra, hosts a mainly obscured and minimally explored greenstone belt prospective for gold and possibly base metals whilst the Wanganui project is prospective for down-plunge high-grade gold shoots. The Wilgee Springs project, along strike from and within the same metamorphic belt as the world-class Greenbushes lithium mine 25km to the south, is prospective for spodumene bearing pegmatites as is the Woodcutters project, 25km south east of the Bald Hill lithium mine and 25km north west of the Buldania lithium deposit. The Woomba Well project is also prospective for lithium bearing pegmatites. The Great Southern Graphite project comprises granted licences encompassing the historical Kendenup graphite workings and the adjacent Martagallup graphite occurrences.
Cautionary Statement
All of Castle's projects in Australia are considered to be of grass roots or of relatively early-stage exploration status. There has been insufficient exploration to define a Mineral Resource. No Competent Person has done sufficient work in accordance with JORC Code 2012 to conclusively determine or to estimate in what quantities gold or other minerals are present. It is possible that following further evaluation and/or exploration work that the confidence in the information used to identify areas of interest may be reduced when reported under JORC Code (2012)
Forward Looking Statement
Statements regarding Castle's plans, forecasts and projections with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that Castle's plans for development of its mineral properties will proceed. There can be no assurance that Castle will be able to confirm the presence of Mineral Resources or Ore Reserves, that any mineralisation will prove to be economic or that a mine will be successfully developed on any of Castle's mineral properties. The performance of Castle may be influenced by a number of factors which are outside the control of the Company, its Directors, staff or contractors
Competent Persons Statements
The scientific and technical information in this Report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Stephen Stone, who is Managing Director of Castle Minerals Limited. Mr Stone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Stone is the Qualified Person overseeing Castle's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the geology of the deposits and exploration. Information in this report that relates to the geological interpretation and Mineral Resources is based on information compiled by Jamie Logan, a full time employee of Palaris Australia Pty Ltd, under the direction and supervision of Dr Allan John Parker. Dr Parker is a Member of the Australasian Institute of Geoscientists, an employee of Palaris Australia Pty Ltd, Director of Geosurveys Australia Pty Ltd, a NonExecutive Director of Centrex Limited and was formerly Managing Director of Lincoln Minerals Limited.
CASTLE MINERALS LIMITED 
