- Hammer Metals (HMX) welcomes Sumitomo Metals Mining Oceania (SMMO) to the Mt Isa East Joint Venture (JV) in Queensland
- It follows a deal signed by Japan Oil, Gas and Metals National Corporation (JOGMEC) to transfer its position in the JV to SMMO
- Exploration has continued at the project’s Trafalgar prospect during the tender process with follow-up drilling planned in the third quarter
- Original terms of the JV will remain in place with SMMO required to spend $6 million by the end of March, 2024, to earn a 60 per cent interest in the JV area
- Shares are up by 1.3 per cent to 7.8 cents each
Hammer Metals (HMX) has welcomed Sumitomo Metals Mining Oceania (SMMO) to the Mt Isa East Joint Venture (JV) in Queensland.
It follows a deal signed by Japan Oil, Gas and Metals National Corporation (JOGMEC) to transfer its position in the JV to SMMO, which is a wholly-owned subsidiary of Sumitomo Metal Mining Co. (SMM).
The deal will see the original terms of the JV continue with SMMO replacing JOGMEC as earn-in partner. These terms require a total expenditure of $6 million by the end of March, 2024 for SMMO to earn a 60 per cent interest in the JV area.
Notably, HMX considers the transfer a boost to the JV, which is aiming to delineate and develop a large-scale iron-oxide-copper-gold project.
According to Hammer, JOGMEC has previously enjoyed exploration success at the site’s Trafalgar prospect, where drilling activities have continued during the tender process.
Drill results from this work are expected in the coming weeks.
Meanwhile, SMMO and Hammer have reportedly prioritised several areas for immediate work. Accordingly, the new partners have planned a number of geophysical and geochemical programs to commence in the near future, including a downhole electromagnetic survey.
Follow-up drilling at Trafalgar and along the Trafalgar trend have also been considered, with work likely to kick-off towards the end of the third quarter.
Hammer’s managing director Daniel Thomas said he was thrilled to welcome Sumitomo Metal Mining to the JV.
“Attracting interest from a successful international mining company is further recognition of the copper potential in the Mount Isa district and the JV’s progress to date,” he said.
“The immediate plans for the JV are being finalised and we expect a return to the Trafalgar trend before the end of the year.
“Several high-ranking targets along this trend remain untested with numerous old workings, similar in nature to those at Trafalgar and at Hammer’s 100 per cent-owned prospects at Lakeview and Neptune.”
Completion of the sale remains subject to the execution of a novation deed and other required documentation.
Hammer advised the company would continue in its capacity as JV operator until completion of the earn-in period at the earliest.
On Thursday, shares were up by 1.3 per cent to 7.8 cents each at 11:26 am AEST.