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Chappi the Hobbit's smithery workshop. His family treasure, Thor Hammer, forges many weapons.
Hobbit Smithy

Hobbit Smithy

Hobbit Smithy is the home of Chappi the Blacksmith, who is a hobbit. He seems to come from a family of blacksmiths. You can get many new weapons from this place provided the proper materials; in some cases, he asks that you sacrifice all the weapons in your inventory that are of the same type as the weapon he is forging for you.