Heidelberg. The Australian company Hammer Metals Limited (“HMX”), of which Deutsche Rohstoff holds 17.3%, announced today that it has entered into a Joint Venture Agreement with Mount Isa Mines Limited, a subsidiary of Glencore. The aim of the Joint Venture is to explore a 644 km2 large land package for IOCG style copper-gold deposits, similar to the nearby Ernest Henry Mine, which is operated by Glencore.
The Agreement contains the following key points:
- Hammer Metals holds 60% interest in the Joint Venture, Mount Isa Mines 40%.
- Hammer Metals is the operator.
- Each party has to provide 50% of the funding until a total of AUD 9 million is spent (nominally AUD 3 million per annum over three years).
- Mount Isa Mines contributes 282 km2 prospective ground to the Joint Venture which is adjoining the Hammer tenements. Previous geophysical measurements have identified several anomalies in these areas, indicating potential mineralization.
- Hammer Metals contributes its main exploration targets to the Joint Venture, namely „Overlander“, „Andy’s Hill“ and „Hammertime“.
- Not included in the Joint Venture is the “Kalman” copper-gold-molybdenum-rhenium deposit which contains an indicated and inferred resource of 30 million tonnes with an equivalent grade of 1.3% copper. Furthermore, approximately 1,650km2 IOCG-prospective ground remains 100% under Hammer Metals ownership.
- Hammer Metals obtains 100% of the exploration rights within the Joint Venture tenements for the metals molybdenum, rhenium, uranium and manganese.
The Joint Venture allows Hammer Metals to intensify its exploration efforts as Mount Isa Mines contributes 50% to the expenses.
Furthermore it enables Hammer Metals to potentially benefit from Glencore’s local processing and smelter capacities for copper and gold ore in the Mount Isa region. This will significantly reduce the required time to bring a potential deposit into production and also lowers its development costs.
Jörg Reichert, CTO of Deutsche Rohstoff comments: “We are pleased to see Hammer Metals entering a Joint Venture with Glencore. There are very few exploration companies that manage to negotiate such long term deals in the current market environment. It once again highlights the quality of Hammer Metals’ assets which were the reason for us to invest in that company in the first place.”
A more detailed version of the press release can be found at www.hammermetals.com.au
Heidelberg, 02 Juni 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.
Deutsche Rohstoff AG
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