Heidelberg. Deutsche Rohstoff acquired 15.625 million shares for a purchase price of AUD 0.08 per share in a capital increase of the Australian exploration company Hammer Metals Limited (www.hammermetals.com.au). The investment amounts to AUD 1.25 million (EUR 0.86 million). Acquiring about 15% of the shares Deutsche Rohstoff will become the second largest shareholder of Hammer. In addition, DRAG has the option to purchase additional 3.8 million shares at a purchase price of AUD 0.15 per share. The option may be exercised within 36 months. Hammer Metals is listed on the Australian Stock Exchange ASX.
Hammer holds licenses in several Australian regions. The focus is located on an area with about 2,000 square kilometers in the Mount Isa region in northwest Queensland. Within this region, and partly in the immediate vicinity of that area, a number of excellent deposits operated by major mining companies are located. These include the mines of Mount Isa, Ernest Henry and George Fisher of Glencore, as well as Cannington of BHP Billiton.
Jörg Reichert, CTO of Deutsche Rohstoff, commented: ”With the investment in Hammer Metals we have access to one of the world’s most important base metal mineral districts. The geophysical footprint of Hammer’s license areas and the results of their first drillholes have great parallels to currently producing large deposits. With success, some of Hammer Metals’ projects could therefore develop to be world class.”
Thomas Gutschlag, CEO of Deutsche Rohstoff, added: “We want use our expertise in exploration, development and production of metal deposits to build up a portfolio of excellent investments with high to very high potential. Hammer is such an investment. We see this as an attractive addition to our activities in the US oil and gas sector.
In the past, Hammer was able to define a resource of 30 million tonnes with 1.3% copper equivalent (Kalman resource). The purpose of the now pending exploration campaign is to confirm existing evidence of a large near-surface copper-gold resource. Based on previous work, there are a variety of attractive drill targets.
In the coming weeks, an extensive exploration program will begin. Its focus will be mainly on further exploration of three promising structures. In addition to geophysical studies, such as induced polarization and aeromagnetics, drilling of 2,800 meters is planned in the subprojects Overlander, Andy’s Hill and Hammertime. The full results of the exploration should be available by the end of May.
Heidelberg, 3 February 2015