Hammer Metals Ltd (HMX)

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CNB:Mount Hope Development And Exploration Footprint Expands

2 April 2024 9:37 AM. Original PDF: Open PDF | 8 Pages

Carnaby Resources expands its footprint for the Mount Hope project, enhancing project economics and exploration potential through a strategic acquisition.

Summary

• Carnaby Resources Limited has announced the expansion of its Mount Hope project.
• The company acquired a 51% interest in three sub-blocks surrounding the Mount Hope deposits, with an option to increase to 70%.
• This acquisition allows for larger, optimized open pit development.
• The Scoping Study's release is delayed by one month to May 2024 due to the acquisition.
• The area contains significant exploration potential along a 5km strike of the Mount Hope IOCG corridor.
• Carnaby paid A$4 million in cash and issued 9.091 million shares to Hammer Metals for the initial 51% interest.
• A positive final investment decision will trigger an additional A$5 million payment to Hammer for an extra 19% interest.

Highlights

• Shares on Issue: 162.8M
• Market Cap: $96.9M
• Cash on hand: $18.4M as at 31 December 2024
• Initial acquisition cost: A$4 million cash plus 9.091 million shares
• Option to increase interest to 70% with an additional A$5 million payment
• Maiden interim Mineral Resource Estimate at Greater Duchess: 21.8Mt @ 1.4% CuEq for 315kt CuEq
• Mount Hope copper gold deposit: 10.3Mt @ 1.7%CuEq for 173kt contained CuEq

Positives

• Expansion allows for larger, more economically beneficial open pit development.
• Strong cash position to support project and exploration activities.
• Significant exploration potential along the Mount Hope IOCG corridor.
• Access to highly prospective terrain adjoining current projects.

Negatives

• The acquisition delays the Scoping Study's release by approximately one month.
• Additional cash payment required for increased interest in the project.

Key Dates

• 2 April 2024: ASX Announcement Date
• 31 December 2024: Cash position report date
• May 2024: Revised release date for the Scoping Study

Alerts

• Contains better than expected results: no
• Contains worse than expected results: yes
• Contains expected results: no
• Sentiment: positive