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Carnaby acquires copper tenements near Mt Isa

Carnaby Resources

Carnaby Resources has added a 70 per cent equity in three Mt Isa copper tenements to its portfolio.

Hammer Metals will retain the balance of the tenements as part of a $20 million transaction, with $9 million to be paid up-front ($4 million in cash and $5 million in Carnaby shares). Carnaby will earn an initial 51 per cent interest as part of this payment.

The three tenements, CLON 958Y, CLON 1030D and CLON 1030J, comprise legally defined portions of Hammer’s lease EPM 26777, and are immediately adjacent to Carnaby’s mining lease that includes the Mt Hope Central discovery.

If Carnaby progresses its Mt Hope Central or Mt Hope North deposits to a decision to mine, a further $5 million will be paid to Hammer. This will see Carnaby’s interest in CLON 958Y, CLON 1030D and CLON 1030J increase to 70 per cent.

If a positive final investment decision is made on mining at the three tenements, Carnaby will pay $6 million in cash to Hammer to close out the transaction.

“We are extremely pleased to have realised this strong valuation outcome of up to $20 million for the three sub-blocks as part of this landmark transaction with our neighbour, Carnaby Resources,” Hammer managing director Daniel Thomas said.

“We see this as a good example of the emerging mining sector working collaboratively to deliver value to shareholders through a pragmatic and commercial approach to the advancement of copper-gold assets.

“With a material equity position in these sub-blocks, Carnaby will be well placed to progress the scoping study for the Greater Duchess project, without the previous constraint of the lease boundary at Carnaby’s key Mt Hope Central tenement.”

Thomas said the transaction was designed to “materially improve” Hammer’s liquidity position, which it will use to accelerate exploration efforts across its wider Mt Isa portfolio.

Carnaby said the transaction enabled it to have “unfettered ability” to develop its Mt Hope Central and Mt Hope North deposits “in the most optimal and unconstrained manner”.

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