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HAMMER METALS LIMITED Capital/Financing Update 2018

Sep 11, 2018

65065_rns_2018-09-11_b45f55fe-4163-4489-8c33-4eaf54333c95.pdf

Capital/Financing Update

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12 September 2018 ASX Code: HMX

$1M RAISED TO FAST TRACK EXPLORATION VIA ENTITLEMENT ISSUE AND STRATEGIC PLACEMENT

CAPITAL STRUCTURE:

Share Price (11/9/18)Shares on Issue $0.032269m
Market Cap $8.6m
Options Unlisted 21m
Significant ShareholdersDeutsche Rohstoff 13.1%
Resource Capital Fund VI 9.3%
Management 8.8%

HAMMER METALS LTD:

ABN 87 095 092 158 Suite 1, 827 Beaufort Street Mt Lawley WA 6052

T: +61 8 6369 1195

E: [email protected] W: www.hammermetals.com.au

Hammer Metals Limited (“ Hammer” or “the Company” ) (ASX: HMX), confirms that the Company’s non-renounceable option entitlement offer ( “the Offer” ) has closed on 7 September with existing shareholders taking up approximately 108,699,189 options under the Offer or 67% of the issue.

The underwriter, DJ Carmichael Pty Limited ( “DJC” ) has fully subscribed for the remaining shortfall of 52,656,016 options and HMX confirms that all Options under the Offer have now been applied for and will be issued in accordance with the terms set out in the Prospectus.

In total the Company has accepted valid applications totalling 161,355,205 Options raising a total of $806,776.

As a result of the strong interest in the Offer and the Company, the Company has determined to accept an additional $200,000 as a strategic share placement to DJC at $0.03 per share for 6,666,667 shares including 4,000,000 free attaching options on the basis of 3 options for every 5 shares taken up in the placement and issued on the same terms as those to be issued under the Offer ( “the Strategic Placement” ). The Strategic Placement will be completed without shareholder approval under the Company’s 7.1 placement capacity.

DIRECTORS / MANAGEMENT:

Russell Davis Executive Chairman

Alex Hewlett Managing Director

Nader El Sayed Non–Executive Director

Simon Bodensteiner Non-Executive Director

On completion of the Offer and Strategic Placement, the Company will have raised $1,006,776 (before costs). These funds will be utilised by the Company to further progress the exciting exploration program underway at the Perentie project in Mt Isa as well as further initiatives across the various Hammer Copper Gold prospects.

The Company would like to thank shareholders, sub-underwriters and DJC for their support of the Offer and advises that, subject to the reconciliation and receipt of cleared funds, holding statements are anticipated to be issued on 14 September 2018.

The Options once quoted will be listed under the ASX code HMXOD, an Appendix 3b will be issued in due course.

Mark Pitts Company Secretary

Mark Whittle Exploration Manager

For further information, please contact:

Mark Pitts

Company Secretary

[email protected]