Exploration company Hammer Metals has teamed up with Sumitomo Metal Mining Oceana (SMMO), providing that company with an opportunity to earn up to an 80% interest in the Bullrush project, in north-west Queensland.
The Bullrush project covers sections of Williams-aged Wimberu Granite, comprising about 87 km2 of Hammer’s broader 2 800 km2 Mount Isa project.
“Bullrush features a large coincident gravity and magnetic anomaly under moderate cover with no previous drilling. The nearby Devoncourt project demonstrates that the large Williams age granite intrusion is a fertile host for copper and gold mineralisation of IOCG style,” said Hammer MD Daniel Thomas.
SMMO has made an initial minimum commitment to complete a 2 000 m drilling programme within 12 months, followed by subsequent investment decisions that may include the commitment to $4.5-million of exploration expenditure within four years to earn a 51% interest in the project; and an additional $2-million in a further 12-month period to increase SMMO’s interest in the project to 60%.
Subsequent to the investment, Hammer can elect to maintain a 40% interest in the project by contributing its pro-rata share of exploration expenditure.
Should Hammer elect not to contribute to its share in expenditure, SMMO has the right to increase its interest in the Bullrush project from 60% to 80% by electing to free-carry Hammer to the completion of a prefeasibility study.