Hammer and Carnaby in merger discussions

Two prime movers and shakers in north-west Queensland copper-gold exploration, Hammer Metals and Carnaby Resources, are in merger talks. Hammer broke the news on the ASX this morning, cautioning that discussions were at a relatively early stage. "There is no certainty that a transaction between the companies will eventuate," it said. Carnaby Resources said it continuously assessed opportunities that made strategic and financial sense and had the ability to deliver value for shareholders. Related: Carnaby reveals new discovery at Greater Duchess Carnaby is completing a scoping study for its Greater Duchess copper-gold project - which includes the Mount Hope, Nil Desperandum and Lady Fanny discoveries (see map at left). The work includes tests to gauge whether ore from the project, 70km south-east of Mount Isa, is amenable for treatment at Glencore’s Mount Isa copper mill and concentrator. The company announced a maiden interim mineral resource estimate for its Greater Duchess project in late October of 21.8Mt at 1.3 per cent copper and 0.2 g/t gold. Hammer Metals has had a hot streak of drilling success across its tenements in the same area, including the Kalman, South Hope, Mount Mascotte, Hardway, and Overlander prospects (see map below). Related: Hammer strikes 34m at 2.5 per cent copper at South Hope Hammer also announced today that it was diluting its position in its Mount Isa East joint venture with Sumitomo Metal Mining Oceania. Sumitomo has reached the $6 million earn-in milestone for a 60 per cent interest and has elected to continue to fund the JV, with drilling of the Shadow South IOCG target scheduled to commence in early March. Hammer can elect to contribute to the JV in the future to maintain its interest at that point in time. “We are very pleased that our partner in the Mount Isa East Joint Venture, Sumitomo Metal Mining Oceania, has elected to continue to fund the JV after reaching the $6 million earn-in milestone," Hammer managing director Daniel Thomas said. "This is another important and positive milestone for our Mount Isa exploration efforts and secures the continued support of Sumitomo Metal Mining as a valued strategic partner in this part of our portfolio. "Importantly, this will ensure that we have ongoing funding for exploration activity within the JV, with the first cab off the rank being the start of drilling in early March at the high-priority Shadow South IOCG target. "This is a large and compelling IOCG target with significant geophysical, geochemical and geological characteristics."

Hammer and Carnaby in merger discussions

Industry Queensland

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