Deutsche Rohstoff AG: Hammer Metals share placement raises approximately AUD 2.25 million
Resource Capital Fund takes Strategic StakeHeidelberg/Perth. Hammer Metals announced today that it has finalized terms for a share placement for the issue of new shares to raise approximately AUD 2.25 million. The placement will consist of approximately 32.2 million shares at 7 cents per share. It will be made in two tranches, as the placement capacity limitations under ASX listing rules require Hammer Metals to obtain shareholder approval for a portion of the placement. A general meeting is scheduled for early September.
The largest participant in the placement is "Resource Capital Fund VI L.P.", contributing AUD 1.75 million. The private equity fund with a mining specific investment mandate manages a committed capital of AUD 2.04 billion.
The proceeds from the placement (net of offer expenses) will be used to accelerate and expand the planned explorations projects on Hammer's 100% owned tenements in the Mount Isa region. This will be in particular drilling at the company's "Millennium" and "Scalper" projects.
Deutsche Rohstoff will not participate in this placement. Consequently, its stake in Hammer Metals will be diluted down to approximately 13%. However, Deutsche Rohstoff still holds a convertible note in the amount of AUD 650,000 bearing an interest rate of 10% p.a. The note will likely be converted in September at 6 cents per share, lifting the company's stake in Hammer Metals back up to nearly 18%. Deutsche Rohstoff will therefore continue to be the largest shareholder of Hammer Metals.
A detailed press release can be found on Hammer's website http://www.hammermetals.com.au.
Heidelberg, 1 August 2016
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de