Hammer Metals receives $80.7M binding proposal

• Austral Resources proposed an $80.7 million binding acquisition of Hammer Metals.
• The proposed consideration values Hammer at $0.087 per share.
• Austral stated the deal supports its broader regional consolidation strategy.

Hammer Metals (ASX:HMX) received a binding acquisition proposal from Austral Resources (ASX:AR1) worth $80.7 million.

The offer represents a 50.8% premium to the previous implied bid from Larvotto Resources (ASX:LRV).

The consideration includes 1.2903 Austral shares and $0.007 of implied spin-off value for each Hammer share.

Hammer stated shareholders are expected to retain a 31.1% stake in the enlarged business.

Following the announcement, the Hammer Metals share price was up at $0.066, reflecting expectations of regional consolidation.

The deal involves spinning out the Western Australian gold assets of Hammer into Carnegie Exploration.

Austral stated the potential transaction aligns with its strategy to consolidate the Northwest Queensland region.