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VANCOUVER, June 7, 2018 /CNW/ - Hannan Metals
Limited ("Hannan" or the "Company") (TSXV: HAN)
(OTCPK: HANNF) announces a non-brokered private
placement financing (the "Offering") of up to 6,700,000
units of the Company (the "Units") at a price of
Cdn$0.15 per Unit (the "Unit
Price") for gross proceeds of up to Cdn$1,005,000. Each Unit comprises one
common share (a "Share") and one common share purchase
warrant (a "Warrant"). Each Warrant entitles the
holder to purchase one additional Share of the Company at an
exercise price of Cdn$0.25 for a
period of three years from closing of the Offering. Each
Warrant will be subject to forced conversion which comes into
effect once the shares trade on a weighted average price of
$0.45 for 20 consecutive trading
days. The expiry date of the Warrants will then be 30 days from the
date of issue of a news release announcing the forced
conversion.
![Hannan Metals Ltd. (CNW Group/Hannan Metals Ltd.) Hannan Metals Ltd. (CNW Group/Hannan Metals Ltd.)](https://mma.prnewswire.com/media/702649/Hannan_Metals_Ltd__Hannan_announces_private_placement_financing.jpg)
Finder's fees may be payable on a portion of the Offering.
Certain insiders of the Company will participate in the
Offering.
All securities to be issued pursuant to the Offering will be
subject to a four-month hold period under applicable securities
laws in Canada.
The Company plans to use the net proceeds to fund exploration
expenditures at the Company's Clare Project in Ireland, as well as for general working
capital and corporate purposes.
The Offering is subject to receipt of approval from the
Exchange.
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) (OTCPK: HANNF)
Hannan Metals Limited has 100% ownership of the County
Clare Zn-Pb-Ag-Cu project in Ireland, which consists of 9 prospecting
licences for 35,444 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.
The maiden mineral resource, dated July 10, 2017, immediately ranked 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. The
zinc equivalent (ZnEq) value was calculated using the following
formula: ZnEq% = Zn % + (Cu% * 2.102) + Pb% * 0.815) + (Ag g/t *
0.023) with assumed prices of Zn $2587/t; Cu $5437/t; Pb $2108/t
and Ag $18.44/oz. Equivalent recovery
for all metals is assumed.
Over the last decade, the team behind Hannan has forged a long
and successful record of financing and 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 Chairman and CEO, 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 projects 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 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.