The hammer he "thinks" about will drop from one off the optional bosses you can do in Orobas Fjords, a powerful hammer for those with combined strength and magic. But the boss is meant to be confronted only after you win the battle tower, and are at least level 22 for that particulate boss I think (don't remember his level really). Razakel is kind of hard, but you can let sassan do the work and try to run away, while maybe killing an add from time to time. Potions wouldn't hurt, and I belive you didn't finish Broken Vally yet right? If right, then load ur quicksave before you confront Razakel (you do have one right?) and go back to broken valley to kill all left monsters and finish all left quests and then come back.