Hammer Metals has entered a joint venture deal which will see Japan Oil, Gas and Metals National Corporation (JOGMEC) invest up to $6 million in a cluster of its North West Queensland projects.
The JV covers sections of the Even Steven, Mount Philp, Dronfield West and Malbon target areas within Hammer’s Mount Isa Project.
Hammer managing director Daniel Thomas hailed the agreement as demonstrating that JOGMEC shared his company’s vision that a large tonnage IOCG deposit such as Ernest Henry was present within that project area.
“The increased exploration funding allows a focused and accelerated exploration program at Mount Isa, thereby maximising the chances of success while minimising shareholder dilution,” he 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.”
$1m to be spent by the end of March 2020
JOGMEC has the right to earn a 60 per cent interest in the areas covered by the agreement by spending $6 million by March 31, 2024, with a minimum expenditure commitment of $1 million by 31 March next year.
Hammer will manage exploration until JOGMEC earns a 60 per cent interest.
The JOGMEC JV and farm-in deal covers just 290 sq km of Hammer’s 2200 sq km Mount Isa Project area.
Hammer says it will be continuing to progress exploration on its 100 per cent-owned and other joint venture properties.
Upcoming Mount Isa Project field work will focus on Hammer’s prospects at Jubilee, Koppany, the Alice-Kings trend and Perentie. Hammer will also continue with resource development studies on its Kalman deposit.