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Hammer Metals to raise $1.5M for follow-up exploration at WA

Mining
ASX:HMX      MCAP $28.40M
06 December 2019 05:41 (AEDT)

Hammer Metals (HMX) has received commitments to raise a $1.5 million placement by issuing approximately 68.2 million new shares at $0.022 per share.

The placement was strongly supported and will fund a follow-up exploration program on its tenements at Bronzewing South and Orelia North throughout December and early next year.

“We are delighted with the outcome of the Placement that was well supported by existing shareholders and several new institutional investors, well exceeding the amount sought,” Managing Director Dan Thomas said.

Hammer intends to conduct follow up air core and reverse circulation drilling at high priority targets at Bronzewing South and Orelia North.

Currently, the company is waiting on assays to be completed from drilling at Orelia North. Once these are received, Hammer will review and release them to the market.

Additionally, Hammer will undertake activities at the Mt Isa copper-gold project early next year as part of its joint venture with the Japan Oil, Gas and Metals National Corporation (JOGMEC).

The company will pursue focused exploration activities, whilst remaining open to considering valuable partnership opportunities.

On top of the placement, Hammer will offer a share purchase plan (SPP) to eligible shareholders who can invest up to $30,000 per shareholder, to raise roughly $1 million.

New shares issued under the SPP will be offered at the placement price of A$0.022 per share.

Hammer Metals is down 11.1 per cent and shares are trading for 2.4 cents each at market close.

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