From a high-level perspective, a merger appears to have obvious logic.
Hammer owns the Kalman deposit that has a current resource of 39 million tonnes grading 0.53% copper and 0.27 grams per tonne gold and is located south south-east of Mt Isa and in the vicinity of Carnaby’s Greater Duchess project that has 21.8Mt at 1.3% copper and 0.2gpt gold within multiple deposits.
Carnaby’s scoping study for Greater Duchess was recently reported as being due to be completed this quarter.
The Rob Watkins-led Carnaby had A$18 million cash at the end of December, giving it an enterprise value of circa $80 million.
The Daniel Thomas-led Hammer had $1.8 million cash at the end of December, giving it an enterprise value of circa $50 million (in the wake of the past two strong sessions for its share price).
Hammer has other assets in the Mt Isa region and claims a total of 530,000t of copper-equivalent resources.
Both companies also hold ground positions in Western Australia.
Carnaby raised $20 million in new equity last April when it issued new shares priced at $1.22 each.
The stock was trading down 2.5% at 58.5c in midday trade today.
At that price it is still more than double what it was before Greater Duchess’ promise was discovered in late 2021.
