Hannan Metals(TSXV:HAN)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 onAugust 2, 2017, andAugust 14, 2017.
- First tranche closing, and issuance of 10,550,713 units at an issue price ofC$0.26per unit for gross proceeds ofC$2,743,185;
- Second and final tranche of the oversubscribed Offering of 2,049,287 units for gross proceeds of$532,815is expected to close on or beforeAugust 24, 2017. This will bring financing to a total of 12,600,000 units for gross proceeds of up toCdn$3,276,000as announced onAugust 14, 2017;
Under the First Tranche, the Company issued 10,550,713 units (the Units) at an issue price ofC$0.26per Unit for gross proceeds ofC$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 ofCdn$0.40for a period of two years expiringAugust 18, 2019. The Company paid broker fees of$43,453.80cash 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 inCanadaexpiring onDecember 19, 2017.
The second and final tranche of the Offering which is necessary to accommodate the oversubscription announced by the Company onAugust 14, 2017, is expected to close on or beforeAugust 24th2017. 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 inIreland, 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 ofthe United Statesand may not be offered or sold withinthe 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 Limitedhas 100% ownership of the County Clare Zn-Pb-Ag-Cu project inIreland, which consists of 9 prospecting licences for 32,223 hectares. Zinc remains in tight supply amidst rising demand and stagnant supply.Irelandis a leading global jurisdiction for zinc mining and exploration. In 2015,Irelandwas the world’s 10th largest zinc producing nation with 230,000 tonnes produced.
This maiden mineral resource for Kilbricken was published inJuly 2017, and immediately ranks Kilbricken as one of the top ten base metal deposits discovered inIrelandby 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, 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.
For further information: www.hannanmetals.com, 1305 1090 West Georgia St., Vancouver, BC, V6E 3V7, Mariana Bermudez, Corporate Secretary, +1 (604) 685 9316, firstname.lastname@example.org