PERTH (miningweekly.com) – ASX-listed junior Hammer Metals has acquired fellow-listed AuKing Mining’s stake in tenements in Mount Isa, forming a new joint venture (JV) with major Glencore.
Hammer and AuKing in December of last year struck a deal under which Hammer would pay 1.5-million shares for a number of tenement holdings held by AuKing, including a 51% interest in the Mount Isa tenements known as the Frosty JV.
Hammer on Thursday told shareholders that as a precondition of the purchase of the Frosty JV, the company had to reach a new JV agreement with Glencore subsidiary Mount Isa Mines. This agreement has now been completed, and a new JV formed which will see Hammer act as the initial manager of the JV while its interest exceeded 50%.
Under the terms of the JV, Mount Isa Mines will have the right to match the terms of any proposed ore or concentrate sale from the tenement by Hammer, to a third party.
“Hammer is very pleased to now be working side by side with Glencore in the Mount Isa district. This JV now completes Hammer’s acquisition of AuKing’s tenement interest in the Mount Isa region. The range of prospective copper-gold targets acquired is considered to significantly enhance Hammer’s current tenement portfolio in the Mount Isa region” said Hammer CEO Alexander Hewlett.
During the current quarter, Hammer will review the data assembled on the project area, and an initial work programme will be prepared and represented to the JV committee for review.