Drilling starts at the Dronfield tenements
Mannheim/Perth. Hammer Metals, of which Deutsche Rohstoff owns 17.84%, announced yesterday, that it has entered into a binding term sheet to form a Joint Venture with Global Energy Metals Corporation (GEMC) to jointly develop the Millennium cobalt tenement. Hammer had acquired the licenses in May 2016 for a total of approximately 85,000 AUD in cash and shares, drilled 23 holes and subsequently published a JORC compliant maiden resource in December 2016. GEMC is a Toronto listed company that acquires and develops cobalt and other battery metals projects.
The term sheet which is subject to the successful completion of a due diligence and a definitive agreement within the next 90 days offers GEMC a three-year option to purchase an interest of 75% upon making project related expenditures to further advance the property. The total consideration for the option is 2.7 million CAD.
The so called “earn in” is split in three stages:
- 500,000 CAD within 6 months for 25% interest
- Further 1 million CAD within 18 months for 65% cumulative interest
- Further 1 million CAD within 36 months for 75% cumulative interest
GEMC will also pay Hammer a total of 200,000 CAD in cash in two equal payments of 100,000 CAD, the first upon signing the definitive agreement and the second on the 6 month anniversary of the first payment.
Hammer Metals further announced today that drilling started at the Dronfield license which is part of the Joint Venture with Newmont Mining. The aim is to test a geophysical anomaly which was identified last year and which has the potential to host an IOCG (iron ore copper gold) style deposit.
Further information can be found at http://www.hammermetals.com.au.
Mannheim, 2 May 2017
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