Australian miner Hammer Metals has boosted their copper-gold portfolio in the North West after completing the first stage of a tenement acquisition from Chinese firm Chinalco Yunnan Copper Resources.
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Chinalco Yunnan (CYU) told the ASX on Monday the deal comprised three mining tenement holdings owned outright by CYU and a 51 per cent interest in a fourth holding under the Mt Frosty Joint Venture with Glencore’s Mount Isa Mines near the disused Mary Kathleen uranium mine.
CYU said the conditions on the sale of the three outright-owned tenements had been finalised with the sale completed on Monday.
These tenements cover the Elaine-Dorothy resource of 143,000 tonnes of copper from 27 million tonnes of ore grading 0.53% copper with gold credits 0.08 grams to the tonne.
It also covers Gem copper-gold resource and the Elaine uranium prospect as well as a range of other copper-gold drill intersections at the Mt Dorothy, Pindora and Prince of Wales prospects and also covers strike extensions of mineralised trends and favourable host rocks identified in Hammer’s neighbouring tenements.
Under this stage of the sale arrangements, Hammer has issued CYU 1,250,000 ordinary shares in the company.
The acquisition secured a range of prospective copper-gold targets that would significantly enhance Hammer's current tenement portfolio in the Mount Isa region
- Alex Hewlett
CYU managing director Paul Williams said the Mt Frosty Joint Venture sale was conditional on approval from Mount Isa Mines and changes Hammer requested to the existing arrangement.
“CYU, Hammer and Glencore are working on these matters but a positive outcome is likely within the next few weeks,” Mr Williams said.
“As soon as this occurs, completion of the sale of this interest to Hammer will take place.”
Hammer Metals CEO Alex Hewlett said the acquisition secured a range of prospective copper-gold targets that would significantly enhance Hammer's current tenement portfolio in the Mount Isa region.
Hammer had announced in December it was buying the CYU holdings.
At the time Mr Williams said the deal would proceed even if the Glencore joint venture trasnfer did not eventuate.
Hammer will be hoping to repeat the success of last year’s acquisition from CYU of the Millennium Prospect at Yeneena in Western Australia.
Hammer defined a maiden open-cut resource of over three million tonnes within months of signing the deal.