Carnaby Resources Limited (ASX:CNB) agreed to acquire 51% stake in Beneficial interest in three sub-blocks within exploration permit EPM26777 from Hammer Metals Limited (ASX:HMX) and Mt Dockerell Mining Pty Ltd for AUD 9.4 million on April 2, 2024. The consideration consists of upfront consideration AUD 4 million and issue of 9.091 million Carnaby shares which will be escrowed for 12 months from the date of issue. Carnaby has the right to acquire an additional 19% beneficial interest to take its total beneficial interest in the Sub-Blocks to 70%.

The transaction also provides formation of an unincorporated joint venture in respect of the area of the SubBlocks. Completion of the Transaction is subject to certain conditions precedent being satisfied or waived, including EPM26777 being renewed on substantially the same terms and conditions as currently apply and the parties entering into a voluntary escrow agreement in respect of the Carnaby shares to be issued at completion of the transaction. The transaction is conditional on regulatory approvals.

The transaction is expected to be completed before the end of April 2024. Euroz Hartleys Limited acted as the financial advisor and Steinepreis Paganin acted as the legal advisor to Carnaby Resources Limited (ASX:CNB). Blue Ocean Equities Limited is acting as the financial advisor and Thomson Geer is acting as the legal advisor to Hammer Metals Limited (ASX:HMX).