Hammer raises $1.7m for Bronzewing South drilling

Hammer Metals is cashed up to carry out its maiden drilling program at the Bronzewing South gold project in Western Australia after raising more than $1.76m through a placement.

The company is currently carrying out an induced polarisation, or “IP”, survey to refine potential drilling targets that identified during an initial field reconnaissance program.

Previous exploration had outlined unexplained gold anomalies coincident with a gravity low, similar to that observed at Echo Resources’ 4 million ounce Bronzewing deposit immediately along strike to the north.

Drilling is expected to begin in the second week of August.

The placement of 87.8 million new shares priced at 2 cents per share to raise more than $1.76m was made to existing shareholders and new sophisticated and institutional investors.

Perth-based corporate advisory services firm, Discovery Capital Partners, acted as the lead managers to the placement.

The company will also continue low-cost exploration and strategic rationalisation of its assets in Queensland’s Mount Isa mining district.

Hammer Chairman Russell Davis said: “We are delighted with the outcome of the placement that generated demand from existing shareholders and a number of new institutional investors exceeding the amount sought.”

“With the IP survey well underway at the Bronzewing South gold project and drilling planned for the second week of August on top of the promising results from low-cost exploration at the Mount Isa project, we are anticipating an exciting period for the company for the remainder of 2019.”

Bronzewing South was acquired earlier this year and is adjacent to existing infrastructure, including Echo’s 2 million tonne per annum Bronzewing processing plant, which is currently on care and maintenance.

Despite this, the project area is relatively underexplored due to the transported cover that conceals the geology beneath and ranges in thickness from 2m to 40m.