PERTH (miningweekly.com) – ASX-listed junior Hammer Metals has signed a definitive agreement with TSX-V listed Global Energy Metals Corporation (GEMC) that will earn the Canadian firm a 75% interest in the Millennium cobalt project, in Queensland.
Under the terms of the agreement, GEMC will have to spend a minimum of C$2.7-million, which includes a cash payment of C$250 000.
GEMC is expected to spend C$500 000 on exploration within the first six months of the agreement to earn an initial 25% interest, and by spending an additional C$1-million within the following 18 months, could up its stake to 65%.
By spending a further C$1-million over a 36-month period, GEMC could increase its stake in the Millennium project to 75%.
“GEMC’s cobalt sector knowledge and partnerships in Asian battery markets was key to our wanting to partner with them,” said Hammer CEO Alex Hewlett on Friday.
“This transaction provides our shareholders with immediate upside in partnering with a cobalt focused player while retaining exposure to longer term value creation that the Millennium project will offer.”