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Austral Resources to acquire Hammer Metals for $80.7M
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Austral Resources to acquire Hammer Metals for $80.7M

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  • Austral Resources Australia agreed to acquire Hammer Metals via a scheme of arrangement valued at approximately $80.7 million, delivering a total implied value of $0.07 per share.
  • Following the announcement, the Austral Resources Australia share price was down at $0.064, while Hammer Metals traded down at $0.077.
  • The transaction is designed to consolidate regional copper assets in Queensland, combining existing processing infrastructure with a broader exploration portfolio.

Austral Resources Australia (ASX:AR1) entered into a binding scheme implementation deed to acquire 100% of Hammer Metals (ASX:HMX) for approximately $80.7 million.

The transaction represents a 29.4% premium to the implied offer price of $0.067 per share under a previously announced scheme with Larvotto Resources (ASX:LVR).

"The Hammer board unanimously recommends Hammer shareholders vote in favour of the Scheme in the absence of a superior proposal," stated Hammer Metals board.

Under the agreement, Hammer shareholders will receive 1.2903 Austral shares plus $0.007 per share in value through a demerged entity holding Western Australian gold assets.

Following the announcement, the Austral Resources Australia share price was down at $0.064, while the share price of Hammer Metals was $0.077.

The company operates as a copper producer and developer with processing hubs located in Queensland.

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