Logo_Deutsche-Rohstoff_AboutHeidelberg. Die australische Hammer Metals Limited („HMX“), where the raw materials to German 16,37% is involved, announced today, that it has signed a joint venture agreement with Newmont Mining. Newmont ( is a leading global gold producer headquartered in Denver, Colorado. The two companies are an area of ​​250km2 explore jointly in the Mount Isa region. The aim of the collaboration is to identify copper-gold deposits of the IOCG type, such as the nearby Ernest Henry Mine.

The earn-in joint venture agreement contains the following key points:

  • Affected are the property "Overlander", "Even Steven" and "Dronfield", the total 250km2 and thus ca. 12,5% the 2,000km2 Royalty cover surfaces of Hammer Metals. All other licenses remain cent owned by Hammer Metals in 100%.
  • Newmont has the option, in three phases accounted for 75% gain on joint venture, it by a total of USD 10,5 My. provides for exploration and project development:
    • Phase I: Newmont gets 35% the joint venture by the investment of USD 1,45 My. over a period of two years. Expenditures amounting to USD 500.000 must take place within the first nine months.
    • Phase II: Newmont may combine its share by providing additional USD 3,05 My. on 65% increase.
    • Phase III: Through the completion of a feasibility study or spending a further USD 6,0 My. Newmont may combine its share of 75% increase.
    • Up to and including Phase II exploration work of the joint venture exclusively at the expense of Newmont and Hammer performed acts as manager of the joint venture.
    • Before the start of Phase III Hammer has the option, dilution under 35% to prevent by proportional contribution to the additional costs. Does it not make use of this right, Newmont accepts up to a total of USD 10,5 My. all costs of the joint venture and increased its share to thereby 75%.
  • Upon completion of Phase III, Hammer may participate proportionally to the project-development costs. In this case a 25% stake in the mining joint venture remains with Hammer Metals. Alternatively accepts Newmont all costs up to the commissioning of the mine and in return receives a 80% Share in the joint venture. In addition, Hammer will have to repay the taken over by Newmont costs including interest by the cash flow from the production.
  • Excluded from the agreement are the resources of "Overlander North" and "South Overlander" the joint venture area already defined. For these Newmont has a pre-emption right upon completion of Phase I.
  • Throughout all phases represents Newmont both technical resources, and geological expertise to the joint venture are available.

Alex Hewlett, CEO von Hammer Metals, said: "We have worked long and hard, to bring this deal to completion. Newonts commitment increases our financial clout significantly. We can now our exploration activities both on the property of the joint venture, accelerate significantly as well to the other license areas. The existing geological structures and identified anomalies on our exploration areas represent a strong indication of the possible presence of a major raw material occurrence. "

Jörg Reichert, CTO of the German commodity, commented: "The conclusion of a joint venture with Newmont, we see a very positive. In the current market situation only very few exploration companies manage such a long-term agreement. It emphasizes the quality of its portfolio of Hammer, which was decisive even for our entry. "

A detailed version of the release will be under

Heidelberg, 15. December 2015

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