Copper, Gold, M&A, News

Carnaby, Hammer Metals talk merger

Cloncurry

A brand new copper-gold miner may be on the cards as Carnaby Resources and Hammer Metals enter into merger discussions.

Carnaby confirmed in an ASX announcement that the two companies were engaged in “preliminary discussions” regarding a potential merger.

“Carnaby continuously assesses a range of opportunities that make strategic and financial sense and have the ability to deliver value for Carnaby shareholders,” the company said.

“The discussions remain confidential and incomplete, and there is no certainty that any transaction will eventuate from these discussions.”

Hammer Metals released a similar ASX announcement to say the companies were in “confidential discussions”.

Both Carnaby and Hammer are progressing projects in the Mount Isa region of Queensland. Carnaby’s Greater Duchess copper-gold project is approximately 70km south of Mount Isa, while Hammer’s various tenements cover approximately 3000 square kilometres in the region.

While the majority of Hammer’s tenements are 100 per cent owned by the company, it is currently progressing the Jubilee deposit as a joint venture with Glencore. If Carnaby and Hammer merge, the new company would own 51 per cent of the tenement.

In addition to its Mount Isa project, Carnaby is also progressing its Pilbara gold and lithium projects and its Malmac project in Western Australia.

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