Reminding peeps that this ia a joint venture .. here's the an...

Reminding peeps that this ia a joint venture .. here's the an they referred to from 2019

HAMMER EXECUTES $6.0M EXPLORATION JV WITH JOGMEC

• Farm-in and Joint Venture (“JV”) Agreement signed with Japan Oil, Gas and Metals National Corporation (“JOGMEC”) over four areas within the Hammer Metals Mount Isa Project.

• The JV covers sections of the Even Steven, Mount Philp, Dronfield West and Malbon target areas covering approximately 290km2 of Hammer’s 2,200km2 Mount Isa Project. The areas are considered highly prospective for the discovery of Iron Oxide Copper Gold Deposits (“IOCG”) similar in style to the Ernest Henry deposit (approximately 220Mt @ 1.1% Cu and 0.5g/t Au).

• JOGMEC has the right to earn a 60% interest by expending $6,000,000 by 31 March 2024, with a minimum expenditure commitment of $1,000,000 by 31 March 2020.

• Hammer will manage exploration until JOGMEC earns a 60% interest.

• Hammer retains a 100% interest in the existing Resources at the Kalman Cu- Au-Mo-Re deposit, the Overlander Cu deposit and the Elaine Cu-Au deposit as well as its 51% interest in the Jubilee Cu-Au deposit.

  Figure 1: Hammer Metals Mount Isa Project showing the JOGMEC JV areas

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Hammer’s Managing Director, Daniel Thomas said:

“The Hammer team is excited that JOGMEC shares our vision that a large tonnage IOCG deposit such as Ernest Henry is present within our Mount Isa Project area. The increased exploration funding allows a focussed and accelerated exploration program at Mt Isa, thereby maximising the chances of success while minimising shareholder dilution. We aim to start immediately.

The ability for Hammer to attract a quality partner such as JOGMEC supports Hammer’s approach in the identification of early stage exploration targets and prospect generation”.

Material Details of the Agreement

• The Farm-in and Joint Venture is over sections of the Even Steven, Mount Philp, Dronfield West and Malbon targets for a total area of approximately 290km2 of the 2,200km2 Mount Isa Project.

• During the Farm-in period, JOGMEC can achieve a 60% interest in the project areas by expending $6,000,000 by 31 March 2024. The Farm-in period is staged as follows, noting that JOGMEC earns its interest after the completion of the Fifth and final Farm-in Period:

o The First Farm-in Period is a minimum expenditure of $1,000,000 by 31 March 2020 before JOGMEC can withdraw from the agreement;

o The Second Farm-in Period is an aggregate expenditure of $2,000,000 by 31 March 2021;o The Third Farm-in Period is an aggregate expenditure of $3,000,000 by 31 March 2022;o The Fourth Farm-in Period is an aggregate expenditure of $4,500,000 by 31 March 2023; ando The Fifth and final Farm-in Period is an aggregate expenditure of $6,000,000 by 31 March 2024.

• Upon completion of the Fifth Farm-in Period, each company can elect to contribute to its pro-rata share of future funding. If either party does not contribute and is diluted to an ownership of less than 10% of the Joint Venture, the company’s equitable interest will convert to a 2% Net Smelter Return Royalty. At any time, the Net Smelter Royalty Return rate can be reduced to 1% via the payment of A$2,000,000.

• The areas of interest are all 100% held by Hammer Metals Ltd subsidiaries Mt Dockerell Mining Pty Ltd and Mulga Minerals Pty Ltd.

• The Exploration Joint Venture remains subject to the following conditions precedent:

o JOGMEC obtaining Foreign Investment Review Board approval; and

o The execution of a Deed of Covenant and Release for the Royalty Agreements between Hammer’s subsidiaries, Santana Minerals Limited and CST Minerals Exploration Pty Ltd.

Work Program Activities

The initial exploration JV activities will focus on the collection of high quality geological, geophysical and geochemical datasets in the JV project areas. The final work program is to be agreed by a joint management committee but is expected to include additional geophysical surveys, detailed mapping and infill geochemistry at the Mt Philp Breccia (including the Shadow prospect), Even Steven, Dronfield and Malbon East targets. It is envisaged that the first phase of exploration may also include drilling of the highest-ranking targets within these areas. The first phase of exploration is expected to be concluded in the second quarter of 2020.

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Hammer will continue to progress exploration on its 100%-owned and other Joint Venture properties. Upcoming Mount Isa Project field work will focus on Hammer’s prospects at Jubilee, Koppany, the Alice-Kings trend and Perentie. Hammer will also continue with resource development studies on its 100%-owned Kalman Cu-Au- Mo-Re Deposit.

For further information please contact:

Daniel Thomas

Managing Director T +61 8 6369 1195

E [email protected]

About JOGMEC

Mark Whittle

Chief Operating Officer