SYDNEY, AUSTRALIA: Hammer Metals Ltd (ASX: HMX) has announced a deal with Element Minerals Australia, a subsidiary of Global Energy Metals Corporation (GEMC), to re-take majority ownership of the Mount Dorothy and Cobalt Ridge Projects, two copper and critical elements projects located in the Mount Isa inlier region of Northwest Queensland.

The Company will acquire an 80% interest in the projects, which were initially sold to GEMC in 2019 as part of Hammer’s divestment of the Millenium Cobalt Project. Hammer decided to re-acquire the prospects after making a significant copper-rare earth discovery at the nearby Hardway prospect, which shows similarities in the mineralogy of the Hardway and Mount Dorothy mineral systems.

Hammer’s Managing Director, Daniel Thomas, said that the Company believes the prospects deserve further exploration and will complement Hammer’s already impressive project inventory in the world-class Mt Isa district.

“We are confident in the opportunity that the Mount Isa region presents for minerals that are critical for Australia’s future and we are determined that Hammer will play a leading role in this region in helping to secure the raw materials needed for batteries and new energy technologies through projects like Mt Dorothy and Cobalt Ridge,” he said.

Mitchell Smith, President and CEO of GEMC, commented that the partial divestiture of the Mount lsa Projects is consistent with GEMC’s strategy of actively managing and streamlining its property portfolio through a partnership model while benefiting from the collaboration with well-funded, technically experienced peer groups.

“In addition to maintaining a sizeable investment exposure in these two early-stage exploration properties with known showings of strategic elements, GEMC also benefits by having created two new royalties on the properties of which we are free-carried on any cash expenditure until the time of completion of a Pre-Feasibility Study,” he said.

The deal is subject to customary conditions, including due diligence, regulatory approvals and execution of definitive agreements. The parties expect to complete the transaction by September 30, 2023.

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