"This combination creates one of the largest and most exciting exploration cobalt packages in Australia," said Mitch Smith, the chief executive at GEMC.
His company is building a district-scale cobalt opportunity in Queensland Australia's Mt. Isa prolific mining jurisdiction.
In 2017, GEMC inked a deal with Hammer, which allowed it to acquire a 75% stake by spending C$2.5mln within three years.
As at March this year, it had spent at least C$500,000 and owned a 25% interest.
"Spurred by the recent drilling success and confidence in adding to the already significant cobalt tonnage at Millennium, we are pleased to announce this acquisition which furthers our long-term growth and value-building strategy," added Smith.
"With this acquisition, we continue to consolidate multi-million tonne cobalt assets and maximize cobalt leverage for our shareholders."
Smith said the company planned to recommence exploration and expansion of the project in a bid to gain a current resource estimate for the projects as well as identify new opportunities.
"The initial work program, that just concluded at Millennium, has only just begun to highlight the potential for the project to be part of a much larger regional cobalt play across the Mt. Isa region of Queensland Australia.
"Hammer is pleased to have the opportunity to be invested in such a dynamic and focused cobalt explorer and developer while retaining exposure to longer term value creation that the Millennium and Mt. Isa Projects will offer," said Alex Hewlett, managing director at Hammer Metals.
To acquire the balance of the Millennium property and the Mt. Isa projects, GEMC will pay Hammer shares equal to 19.9% of the issued share capital.
Shares dropped 4.55% to stand at C$0.10.