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VANCOUVER, July 9, 2018 /CNW/ - Hannan
Metals Limited ("Hannan" or the "Company") (TSX.V: HAN)
(OTCPK: HANNF) announces the closing of its non-brokered
private placement financing (the "Offering") that was
previously announced on June 7, 2018.
Under the Offering, the Company has issued 7,370,900 units of the
Company (the "Units") at a price of Cdn$0.15 per Unit (the "Unit Price") for
gross proceeds of Cdn$1,105,635.
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 is subject to a forced
conversion once the shares trade above a weighted average trading
price of Cdn$0.45 per common share
for any 20 consecutive trading days commencing at any time after
November 7, 2018. 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 Limited (CNW Group/Hannan Metals Ltd.) Hannan Metals Limited (CNW Group/Hannan Metals Ltd.)](https://mma.prnewswire.com/media/715618/Hannan_Metals_Ltd__Hannan_announces_closing_of_oversubscribed_pr.jpg)
The Company paid broker fees of Cdn$3,000 cash commission and issued 20,000
broker warrants to an arm's length finder. All securities
issued under the Offering are subject to a four-month and one day
hold period under applicable securities laws in Canada expiring on November 7, 2018.
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
933,333 Units for aggregate gross proceeds of Cdn$139,999 to the Company.
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.
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 or to, or for
the account or benefit of, a U.S. Person (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 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 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.