Hammer Metals Limited (ASX: HMX), domiciled in Mt Lawley, Western Australia, is a metal and mining company which holds a strategic tenement position covering approximately 2500 square km within the Mount Isa mining district which is known to have world’s most significant iron oxide copper-gold (IOCG) minerals.
HMX has 100% interests in the Overlander North and Overlander South (copper and cobalt) deposits, the Kalman (copper – gold – molybdenum – rhenium) deposit, and the Elaine Dorothy (copper and gold) deposit. HMX also has a 75% interest in the Millennium (copper – cobalt – gold) deposit and a 51% interest in the emerging Jubilee (copper and gold) deposit. Being an active mineral explorer, HMX has a range of prospective targets at various stages of testing and focusses on exploring large copper-gold deposits of the Ernest Henry style.
Today, Hammer has announced information regarding the share placement. HMX has agreed to raise A$1 million through a share placement to sophisticated investors with the right to accept oversubscriptions.
HMX will be issuing approx. 50 million shares at a price of A$0.02 per share. It will also include a free attaching listed option on the basis of 1 listed option for every 2 placement shares and will have the same terms as the existing class of quoted options. Further, the options will be exercisable on or before 30 September 2020 by a payment of $0.03 per option.
Mr Russell Davis, the Executive Chairman and Mr Ziggy Lubieniecki, the Non-Executive Director, have also agreed to participate in the placement. Hammer would be circulating a Notice of Meeting in due course.
Hammer will be proceeding with the placement in two tranches with 14 million shares and 7 million options to be issued to the Directors which is subject to the shareholders’ approval. The remaining shares and options will be issued as 8,170,292 ordinary shares and 18 million listed options in accordance with listing rule 7.1, and 27,829,708 ordinary shares in accordance with listing rule 7.1A. Hammer has received firm bids for the placement, and it will be issuing an Appendix 3B along with section 708A notice in due course on finalisation of applications and receipt of cleared funds.
HMX will use the net proceeds for Mining Studies over the Jubilee, Overlander, Kalman, and Elaine deposits; to drill high-grade copper-gold assets; generate drilling targets for potential large-scale copper-gold systems at Mt Philip Breccia and Perentie; identify new copper and gold projects.
DJ Carmichael Pty Limited (DJC) has acted as Lead Manager to the offer and will receive advisory fees for its work on industry accepted commercial terms.
Looking at Hammer Metals Limited’s stock performance, it has generated a positive return of 5.88% during the past six months. Hammer’s securities were placed in a trading halt on 5 February 2019, pending the placement announcement. Today, the halt was lifted, and closed the day’s session at A$0.022 (as on 07 February 2019) with a surge of 22.22% in the price during the day’s performance. Currently, HMX has approx. 278.3 million shares outstanding with a market cap of circa A$5.01 million.
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