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VANCOUVER, Aug. 21, 2017 /CNW/ - Hannan Metals
Limited ("Hannan" or the "Company") (TSX.V: HAN)
(OTCPK: HANNF) announces the closing of the first
tranche (the "First Tranche") of the Company's
oversubscribed non-brokered private placement financing (the
"Offering") that was announced on August 2, 2017, and August
14, 2017.
Key Points:
- First tranche closing, and issuance of 10,550,713 units at an
issue price of C$0.26 per unit for
gross proceeds of C$2,743,185;
- Second and final tranche of the oversubscribed Offering of
2,049,287 units for gross proceeds of $532,815 is expected to close on or before
August 24, 2017. This will bring
financing to a total of 12,600,000 units for gross proceeds of up
to Cdn$3,276,000 as announced on
August 14, 2017;
Under the First Tranche, the Company issued 10,550,713 units
(the "Units") at an issue price of C$0.26 per Unit for gross proceeds of
C$2,743,185. Each Unit
comprises one common share (a "Share") and one-half of one
common share purchase warrant (a "Warrant"). Each
whole Warrant entitles the holder to purchase one additional Share
of the Company at an exercise price of Cdn$0.40 for a period of two years expiring
August 18, 2019. The Company paid
broker fees of $43,453.80 cash
commission and issued 167,130 broker warrants to arm's length
finders. All securities issued under the First Tranche are
subject to a four-month and one day hold period under applicable
securities laws in Canada expiring
on December 19, 2017.
The second and final tranche of the Offering which is necessary
to accommodate the oversubscription announced by the Company on
August 14, 2017, is expected to close
on or before August 24th
2017. The Company will pay finder's fees on a portion of the second
tranche. Certain insiders of the Company that have
participated in the financing will be included in the second
tranche closing.
The Company plans to use the net proceeds from the Offering to
fund exploration expenditures at the Company's Kilbricken Project
in Ireland, as well as for general
working capital and corporate purposes.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or the
securities laws of any state of the
United States and may not be offered or sold within
the United States (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or
pursuant to an exemption from such registration requirements.
About Hannan Metals Limited
(TSX.V:HAN)
Hannan Metals Limited has 100% ownership of the County
Clare Zn-Pb-Ag-Cu project in Ireland, which consists of 9 prospecting
licences for 32,223 hectares. Zinc remains in tight supply
amidst rising demand and stagnant supply. Ireland is a leading global jurisdiction for
zinc mining and exploration. In 2015, Ireland was the world's 10th largest zinc
producing nation with 230,000 tonnes produced.
This maiden mineral resource for Kilbricken was published in
July 2017, and immediately ranks
Kilbricken as one of the top ten base metal deposits discovered in
Ireland by tonnes and grade. Total
indicated mineral resources were calculated as 2.7 million tonnes
at 8.8% zinc equivalent ("ZnEq"), including 1.4 million tonnes at
10.8% Zneq and total inferred mineral resources of 1.7 million
tonnes at 8.2% ZnEq, including 0.6 million tonnes at 10.4% ZnEq.
Importantly, the initial resource is expandable at all scales, from
near resource to prospect scale.
Over the last decade, the team behind Hannan has forged a long
and successful record discovering mineral projects in Europe.
Additionally, the team holds extensive zinc experience, gained from
the world's largest integrated zinc producer of the time, Pasminco
Ltd.
Mr. Michael Hudson FAusIMM, Hannan's CEO and Chairman, a
Qualified Person as defined in National Instrument 43-101, has
reviewed and approved the technical disclosure contained in this
news release.
On behalf of the Board,
"Michael
Hudson"
Michael Hudson, CEO &
Chairman
Forward Looking Statements
Certain information set forth in this news release contains
"forward-looking statements", and "forward- looking information"
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitutes
forward-looking statements, which include the Company's
expectations regarding future performance based on current results,
expected cash costs based on the Company's current internal
expectations, estimates, projections, assumptions and beliefs,
which may prove to be incorrect. These statements are not
guarantees of future performance and undue reliance should not be
placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause the
Company's actual performance and financial results in future
periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statement. These risks and uncertainties include, but are not
limited to: closing of the second tranche of the Offering, the
proposed use of the net proceeds from the Offering, liabilities
inherent in mine development and production, geological risks, the
financial markets generally, and the ability of the Company to
raise additional capital to fund future operations. There can be no
assurance that forward-looking statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Hannan Metals Ltd.