The agreement is subject to approval under section 195(4) of the Corporations Act.
The acquisition secures the under-explored terrain along strike of the 4-million-ounce Bronzewing gold mine and the 1 million-ounce Orelia deposit.
The project will be a positive addition to Hammer's portfolio, with its prime gold exploration location close to existing infrastructure and active exploration activities.
Hammer chairman Russell Davis said: “With the proposed acquisition of the Bronzewing South Gold Project, Hammer will have strategic tenement positions in two of the world’s great mining provinces – the Mount Isa province in northwest Queensland and the eastern goldfields of WA.
“Bronzewing South is strategically located in the heart of the 24 million-ounce Yandal greenstone belt with its current high levels of gold mining and exploration activity and existing infrastructure.
“Hammer also has substantial board and management experience in gold exploration with a track record of success in this endeavour.”
An initial drilling program will comprise detailed structural targeting and reverse circulation drilling.