Carnaby hammers out deal for key copper ground

There will be no corporate transaction between copper explorers Carnaby Resources and Hammer Metals but the two have agreed to a deal with ground in the Cloncurry-Mt Isa region the latter holds next to Carnaby's Mt Hope resources that'll enable an optimal open cut development (reports MiningNews).

There will be no corporate transaction between copper explorers Carnaby Resources and Hammer Metals but the two have agreed to a deal with ground in the Cloncurry-Mt Isa region the latter holds next to Carnaby’s Mt Hope resources that’ll enable an optimal open cut development (reports MiningNews).

Carnaby, which has 10.3 million tonnes at 1.7% copper equivalent for 173,000t of copper equivalent being targeted in two open cuts, says the Mt Hope Central open pit will now be able to extend to 170m below surface versus 90m without access to Hammer’s ground.

Completion of the the scoping study for this development will now happen in May, one month later than previously flagged.

For Hammer, the deal sees it initially receiving A$4 million in cash and the issue of 9.1 million shares.

Hammer will get another $5 million cash when Hammer wants to increase its stake to 70% interest, or when it makes a development decision.

Hammer will also get a 30% profit share on ore mined from the ground it selling to Carnaby.

Carnaby had cash at the end of December at $18.4 million.

Hammer had cash at the same time of $1.8 million.

In February the two had discussions about a merger.

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