/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES./
VANCOUVER, Aug. 25, 2017 /CNW/ - Hannan Metals
Limited ("Hannan" or the "Company") (TSX.V: HAN)
(OTCPK: HANNF) announces that further to the
Company's news releases of August 2,
2017, August 14, 2017 and
August 21, 2017, the Company has
closed the second and final tranche (the "Second Tranche")
of its non-brokered private placement financing (the
"Offering").
Key Points:
- Under the Second Tranche, the Company has issued 2,254,000
units at an issue price of C$0.26 per
unit for gross proceeds of C$586,040;
- The Company announced the closing of the first tranche (the
"First Tranche") on August 21,
2017. In the aggregate, the First Tranche and Second
Tranche comprise a total of 12,804,713 Units for gross proceeds of
$3,329,225.
Under the final Second Tranche, the Company issued 2,254,000
units (the "Units") at an issue price of C$0.26 per Unit for gross proceeds of
C$586,040. 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 24, 2019. The Company paid
broker fees of $18,065 cash
commission and issued 69,480 broker warrants to arm's length
finders. All securities issued under the Second Tranche are
subject to a four-month and one day hold period under applicable
securities laws in Canada expiring
on December 25, 2017.
The Company announced the closing of the First Tranche on
August 21, 2017. In the
aggregate, the First Tranche and Second Tranche comprised of a
total of 12,804,713 Units for gross proceeds of $3,329,225.
Participation by Insiders of the Company in the Offering is
considered a "related party transaction" pursuant to Multilateral
Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The Company is
exempt from the requirements to obtain a formal valuation or
minority shareholder approval in connection with the Insiders'
participation in the Offering in reliance of sections 5.5(b) and
5.7(a) of MI 61-101. Certain directors and officers of the
Company participated in the Offering and purchased and aggregate of
771,000 Units for aggregate gross proceeds of $200,460 under the Second Tranche.
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, Chairman &
CEO
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: 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.