Hammer Metals Welcomes Sumitomo JV Continuation

THE DRILL SERGEANT: Hammer Metals (ASX: HMX) should be taking questions without notice at the RIU Explorers Conference this morning after announcing it is in confidential discussions regarding a potential merger with Carnaby Resources (ASX: CNB).

Hammer Metals said discussions at this stage remain confidential and incomplete and are at a relatively early stage, adding that there is no certainty that a transaction between the companies will eventuate.

The company released another announcement regarding recent exploration activities and the status of its Mount Isa East Joint Venture with Sumitomo Metal Mining Oceania (SMMO) in North Queensland.

Hammer explained that SMMO has reached a milestone $6 million of exploration expenditure under the JV and has now elected to continue funding the joint venture.

However, Hammer signalled its intention to dilute its interest in the JV in order to preserve capital to focus on its 100 per cent-owned prospects.

“We are very pleased that our partner in the Mount Isa East Joint Venture, Sumitomo Metal Mining Oceania, has elected to continue to fund the JV after reaching the $6 million earn-in milestone,” Hammer Metals managing director Daniel Thomas said in the company’s ASX announcement.

“This is another important and positive milestone for our Mount Isa exploration efforts and secures the continued support of Sumitomo Metal Mining as a valued strategic partner in this part of our portfolio.

“Importantly, this will ensure that we have ongoing funding for exploration activity within the JV, with the first cab off the rank being the start of drilling in early March at the high-priority Shadow South IOCG target.

“This is a large and compelling IOCG target with significant geophysical, geochemical and geological characteristics.

“We are looking forward to seeing what this drilling can deliver.

“We have also now received all of the assay results from drilling completed late last year across multiple prospects within the Mt Isa East JV.

‘The results included several relatively narrow but very high-grade and broad spaced mineralised intercepts, several of which are considered to be worthy of further follow-up.”