Handa Copper Corporation Announces Transaction to Earn Up to a 100% Interest in Two Copper Projects in Republic of Congo
April 29 2014 - 7:00AM
Marketwired
Handa Copper Corporation Announces Transaction to Earn Up to a 100%
Interest in Two Copper Projects in Republic of Congo
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 29, 2014) -
Handa Copper Corporation ("Handa Copper" or the "Company")
(TSX-VENTURE:HEC) announced today that it has entered into binding
agreements with Renaissance Copper S.A.R.L ("Renaissance") and with
Nirvana Resources S.A.R.L ("Nirvana"), each of the Republic of
Congo ("Congo"), to earn up to a 100% interest (subject to 10%
mandatory state participation) in each of the Maboudou and the
Banda-Kayes projects, each located in the Republic of Congo.
The
Properties
Renaissance's Maboudou project is located within the department
of Niari in northwestern Republic of Congo and consists of a land
package covering approximately 3,000 square kilometres. Nirvana's
Banda Kayes project has a land package totalling approximately
5,100 square kilometres and is located in the department of Bouenza
in the south of the country. Both areas are underlain by the
Neoproterozoic metasediments of the West Congolian Belt, a highly
prospective geological belt that traverses the Republic of Congo
and extends north into Gabon and south into the Democratic Republic
of Congo.
The Option
The agreements (the "Option Agreements") with each of
Renaissance and Nirvana have the same terms, but are independent of
each other and are not cross-conditional. Each Option Agreement
provides Handa Copper with an irrevocable and exclusive option to
earn interests in each project as summarised below:
- First Option - an initial 20% interest in consideration for a
cash payment of US$200,000 for each project.
- Second Option - a further 30% interest by proving the first
inferred copper resource on the property within 32 months of
Research Permit for each project being signed by the President of
the Republic of Congo.
- Simultaneously with the exercise of the Second Option in each
project Handa shall be obliged to pay an amount of US$200,000,
earning a further 1% interest (total 51%) interest in each
project.
- Third Option - Handa will earn a further 49% interest (total
100%) in each project upon making a cash payment of $3,000,000,
which payment will be due following: (i) completion of a Bankable
Feasibility Study, to occur within 24 months after the exercise of
the Second Option: and (ii) the issue of a Mining Permit for the
project. Upon the execution of the Third Option, each Vendor will
retain 1.455% production royalty in its respective project.
- The Option Agreements are subject to the pending signature of
the Research Permit applications by the President of the Republic
of Congo and to their approval by TSX Venture Exchange.
"I see these agreements as an opportunity for the Company to
play a major role in what may prove to be one of the last
undeveloped copper provinces in the world," said Jon R. Stacey,
President of Handa Copper. "In geological terms, the West Congolian
Belt is very similar to the Central African Copperbelt; all the
ingredients are present and there are many known copper showings,
but it has never been systematically explored. Until recently it
has been overshadowed by the offshore petroleum industry elsewhere
in Congo, but it is a highly prospective geological belt and we
have every reason to believe that large-scale Copperbelt-style
deposits like Kansanshi, Lumwana and Sentinel could be present. The
Company has sufficient funding to execute the first phase of
exploration and will be mobilizing to the field shortly."
Handa's investments in the Maboudou and Banda Kayes projects are
consistent with its strategy of identifying copper projects in some
of Africa's most prospective geological belts.
About Handa Copper Corporation
The Company is focused on the review of copper opportunities in
Africa. Our field geologists are regularly engaged in field
evaluation of project submissions and testing in-house exploration
concepts. Our goal is to build a portfolio of significant copper
projects in Africa.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Certain statements in this news release contain
forward-looking information. These statements include, but are not
limited to, statements with respect to the Option Agreements,
including the terms thereof, and with respect to the Maboudou and
Banda Kayes Projects. These statements address future events and
conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of to be materially different from any
future results, outcome, performance or achievements expressed or
implied by the statements. Such factors include, among others, the
overarching risk that the options will not be exercised, and risks
related to the availability of financing and the future price of
metals. With respect to the Maboudou and Banda Kayes Projects, risk
factors include the price of metals, results of exploration
activities, relations with locals, jurisdictional risks, the
availability of exploration equipment, and risks related to the
exercise of the Option Agreements. There can be no assurances that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, the reader should not place any undue
reliance on forward-looking information or statements. The Company
undertakes no obligation to update forward-looking information or
statements, other than as required by applicable law.
Handa Copper CorporationMarek KreczmerCEO(604)
601-6926marek@handacopper.com
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