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Rimfire expands cobalt footprint

Diamond Drill rig at Bald Hill

Rimfire Pacific Mining LTD has more than doubled the size of its Broken Hill Cobalt Project following the execution of a tenement purchase agreement with Castillo Copper’s subsidiary BHA No. 1.

The sale of an unencumbered 100 per cent of Castillo’s Exploration Licenses (EL 8572 and EL 8599), which lie next to and contain the same host rock as that found at Rimfire’s Bald Hill cobalt prospect 30km west of Broken Hill, will allow for Rimfire to expand the project area.

“Expanding the priority Broken Hill cobalt project is a strategic development for Rimfire and builds on the game-changing high-grade cobalt sulphide drill intercepts obtained at Bald Hill last year,” Rimfire Managing Director, David Hutton, said.

“The new tenements are prospective for cobalt, copper and rare earth elements and we look forward to getting on the ground as soon as possible to determine the priorities for exploration follow-up at Broken Hill while concurrently advancing the development of our NSW scandium projects.”

Chairman of Castillo Copper, Ged Hall, said the Board viewed the agreement as mutually beneficial and said it would allow the company to focus on the development of their portfolio of assets while retaining interest in the Broken Hill Project.

“Following the Strategic Review we completed late last year, the company is streamlining its portfolio of high-quality assets and focusing on those it deems as core, which the Board believes will allow Castillo to most optimally generate value for shareholders,” Mr Hall said.

Diamond drilling by Rimfire at Bald Hill last year successfully intersected high-grade cobalt associated with strongly disseminated to semi-massive sulphide mineralisation, returning 125m at 0.13 per cent cobalt from 198m in FI2479, including 97m at 0.15 per cent cobalt.

Under the agreement, Rimfire will issue $150,000 worth of shares at $0.0186 to Castillo. The issue price is the five-day volume weighted average price (VWAP) up to and including the last day of trading on the ASX before the date of executing the agreement.

Rimfire will also issue a further $150,000 worth of shares to Castillo if at any time after completion of the transaction Rimfire’s share price five-day VWAP is greater than $0.0279, the shares to be issued would be at the subsequent share price. The company would also issue $5.376 million Rimfire ordinary shares if the subsequent share issue price is met.

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