Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed Hammer Metals rose by 35% on Thursday after the company agreed to terms for the acquisition of the Bronzewing South gold project, in Western Australia.
The project consists of five granted exploration licences and two prospecting licences covering a total 111 km2.
The project is located in the heart of the 24-million-ounce Yandal greenstone belt, and is immediately along strike of the four-million-ounce Bronzewing mine and the one-million-ounce Orelia deposit.
Under the terms of the agreement, Hammer would acquire the project from privately held Carnegie Exploration in return for A$550 000 worth of Hammer shares.
The acquisition is conditional on a final due diligence and shareholder approval, as two of the Hammer directors had interest in Carnegie.
“With the proposed acquisition of the Bronzewing South gold project, Hammer will have strategic tenement positions in two of the world’s great mining provinces; the Mount Isa province in Queensland, and in the Easter Goldfields of Western Australia,” said Hammer chairperson Russell Davis.
“Bronzewing South is strategically located in the heart of the 24-million-ounce Yandal greenstone belt, with its current high levels of gold mining and exploration activity and existing infrastructure.
“Hammer also has substantial board and management experience in gold exploration, with a track record of success in this endeavour,” Davis said.
Hammer shares trading closed at a high of 3.1c a share on Thursday, up from an opening price of 2.2c a share.