Deutsche Rohstoff subscribes AUD 650,000 convertible bond/Financing of further exploration activity in Mount Isa region secured
Heidelberg. Australian exploration company Hammer Metals (“HMX”), in which Deutsche Rohstoff holds a share of 17.3%, has successfully raised AUD 1,000,000 to continue exploration activities at their Mount Isa tenements. A significant portion of the funds totaling AUD 650,000 were contributed from Deutsche Rohstoff through a convertible loan agreement. The remaining AUD 350,000 were sourced through a share placement to sophisticated investors, including the management of Hammer Metals.
The convertible loan term is 24 months from the date of execution with interest accruing at 10% per annum. The conversion price is set at 6 cents for each Hammer Metals share and the loan is convertible by either Deutsche Rohstoff or Hammer Metals at any time during the term. Should the loan however be converted inside the first 12 months a minimum interest period of 12 months would still apply. Interest payments can be made in cash or shares at a price of 6 cents per ordinary share. In case of conversion of the loan into shares Deutsche Rohstoff will receive a total number of 10.83 million shares.
Through the AUD 350,000 share placement to other investors Deutsche Rohstoff’s shareholding in Hammer Metals will temporarily drop to 16.4%. However, the complete conversion of the loan, including accrued interest into Hammer Metals shares would ultimately lift Deutsche Rohstoff’s share to 25.4%. In addition to this, Deutsche Rohstoff receives 5,416,666 options to acquire ordinary shares at a strike price of 10 cents per Hammer share. This option program increases the number of HMX options held by Deutsche Rohstoff to a total of 8,466,229. Furthermore Deutsche Rohstoff will receive a seat on the board of directors of Hammer Metals.
Using the proceeds from the capital raising Hammer plans to continue exploration work on the companies Mount Isa tenement portfolio. This portfolio is situated in the heart of the Mount Isa mining district which neighbour’s several world-class base metal deposits within a 100km radius. Earlier this year Hammer made a promising copper discovery at it’s 100% owned Overlander deposit., Hammer also owns a large copper/gold deposit with a JORC compliant resource called Kalman, which is also situated within the Mount Isa region.
Heidelberg, 27 July 2015
Deutsche Rohstoff (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in political stable countries with high environmental standards. The business concept is based on redeveloping deposits, which have been well explored in the past. For more information please visit www.rohstoff.de.