- Hammer Metals (ASX: HMX) has signed a farm-in and joint venture agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) within Hammers’ Mount Isa Project
- The Japanese company will spend $6 million to earn a 60 per cent stake in the projects
- Hammer will continue to progress exploration on its other projects
- Hammer Metals is up 4 per cent on the market today and is selling shares for 2.6 apiece
Hammer Metals has signed a farm-in and joint venture agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) over four areas within Hammers’ Mount Isa Project.
JOGMEC has agreed to spend $6 million to earn a 60 per cent stake in the projects. The Japanese company will have to pay the full amount by March 2024.
The joint venture will cover sections of the Even Steven, Mount Philp, Dronfield West and Malbon target areas covering approximately 290km2 of Hammer’s 2,200km2 Mount Isa Project.
Hammer said it will manage exploration until JOGMEC earns a 60 per cent interest.
JOGMEC is a Japanese government Independent Administration Institution tasked to ensure a stable supply of mineral resources for Japan.
Managing Director Daniel Thomas says the Hammer team is excited to work with JOGMEC, as the company shares the same values and visions.
“The increased exploration funding allows a focussed and accelerated exploration program at Mt Isa, thereby maximising the chances of success while minimising
shareholder dilution,” Daniel said.
“We aim to start immediately. The ability for Hammer to attract a quality partner such as JOGMEC supports Hammer’s approach in the identification of early-stage exploration targets and prospect generation,” he added.
Initial exploration activities will focus on the collection of the geological, geophysical and geochemical datasets in the JV project areas. The first phase of exploration is expected to conclude in the second quarter of 2020.
Hammer will continue to progress exploration on its other projects.
Hammer Metals is up 4 per cent on the market today and is selling shares for 2.6 apiece at 2:12 pm AEDT.