Australian junior Hammer Metals has formed a joint venture (JV) with Glencore after acquiring AuKing’s interest in properties near Mount Isa in Queensland.
Hammer last year secured a deal with AuKing that would give it a 51 per cent share in the Mount Isa tenements, known as the Frosty JV, in exchange for 1.5 million of its shares.
A second part of the deal required Hammer reach a JV agreement in regards to the assets with Glencore’s local subsidiary, Mount Isa Mines, which has now been completed.
Mulga Minerals, Hammer’s subsidiary, will manage the JV, with each participant to contribute exploration funds according to their interests in the tenements.
Historically, exploration at the tenements has focused on uranium, with the proximity to the now-closed Mary Kathleen uranium mine.
The JV, however, includes a significant strike length of the Mary Kathleen Shear Zone, which hosts copper-gold, uranium and rare earth prospects.
Hammer Metals chief executive Alexander Hewlett said the company was pleased to be working side by side with Glencore in the Mount Isa district.
“This JV now completes Hammer’s acquisition of AuKing’s tenement interests in the Mount Isa region,” Hewlett said.
“The range of prospective copper-gold targets acquired are considered to significantly enhance Hammer’s current tenement portfolio in the Mount Isa region.”
The agreement provides Mount Isa Mines with the right to match the terms of any proposed sale of ore or concentrate from the tenement by hammer to a third party.