Hammer Metals has agreed to acquire an 80% interest in the Mount Dorothy and Cobalt Ridge Projects in North West Queensland, Australia, from Element Minerals Australia (Element), a subsidiary of Global Energy Metals Corporation (GEMC).
Located in the Mount Isa inlier region of North West Queensland, the two copper and critical elements projects, jointly known as Mount Isa projects, were initially sold by Hammer Metals to GEMC in 2019 as part of its Millenium cobalt project divestment.
The Mount Dorothy Project is located approximately 10km south-west of Hammer’s copper-rare earths discovery at Hardway prospect.
In a press statement, Hammer said: “In the light of Hammer’s recent exploration success in making a significant copper-rare earth discovery at the nearby Hardway prospect, and the exploration results from Mount Dorothy by China Yunnan Copper Australia in 2011 that suggest similarities in the mineralogy of the Hardway and Mount Dorothy mineral systems, the company is pleased to have re-acquired the prospects.”
Under the deal, Hammer will acquire 80% of the exploration tenure holding the Mount Dorothy and Cobalt Ridge prospects in exchange for a 1% net smelter royalty on each of the properties.
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Hammer will also incur all exploration and holding costs for the two projects until the pre-feasibility study is completed.
Upon completion of the study, Element will have the option to either fund its pro-rata annual expenditure or be diluted, based on the dilution formula of a standard joint venture.
Hammer managing director Daniel Thomas said: “We believe the prospects deserve further exploration and will complement Hammer’s already impressive project inventory in the world-class Mt Isa district.
“We are confident in the opportunity that the Mount Isa region presents for minerals that are critical for Australia’s future and we are determined that Hammer will play a leading role in this region in helping to secure the raw materials needed for batteries and new energy technologies through projects like Mt Dorothy and Cobalt Ridge.”
Global Energy Metals president and CEO Mitchell Smith said the partial sale of the Mount Isa Projects is consistent with its strategy of actively managing and streamlining its property portfolio through a partnership model.