“This combination creates one of the largest and most exciting exploration cobalt packages in Australia,” Global Energy Metals chief executive officer Mitchell Smith said.
“Spurred by the recent drilling success and confidence in adding to the already significant cobalt tonnage at Millennium, we are pleased to announce this acquisition which furthers our long-term growth and value-building strategy.
“With this acquisition, we continue to consolidate multi-million tonne cobalt assets and maximise cobalt leverage for our shareholders. Upon completion, we plan to recommence exploration and expansion of the project with the intent to commission a current resource estimate for the projects as well as identify new opportunities in the cobalt-rich district.”
The acquisition includes the Mt. Dorothy cobalt project and the Cobalt Ridge project (collectively the Mount Isa projects) in addition to Millenium, an advanced exploration project with a JORC estimate of 3.1 million tonnes of inferred resources grading 0.14 per cent cobalt, 0.34 per cent copper and 0.12 g/t gold.
Consideration for the sale is the issue to Hammer of GEMC ordinary shares, giving Hammer a 19.9 per cent interest in the company plus board representation.
Hammer to focus on copper-gold projects
Hammer chief executive officer Alex Hewlett said the selling its 75 per cent stake in Millienium would allow the company to concentrate on its advanced
copper-gold exploration programs within its 3000sq km tenement package in the Mount Isa mining district.
“The work program that just concluded at Millennium, continues to highlight the potential for the project to be part of a much larger regional cobalt venture across the Mount Isa region of north-west Queensland,” he said.
“With the proposed agreement Hammer is pleased to have the opportunity to have a significant interest in a focused cobalt explorer and developer, while retaining exposure to longer term value creation that the Millennium and other Mount Isa cobalt projects will offer.”
GEMC also owns an advanced primary cobalt mine project in Ontario, Canada.