Hannan announces closing of $2.7M as first tranche of oversubscribed private placement financing
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VANCOUVER, Aug. 21, 2017 /CNW/ - Hannan Metals Limited ("Hannan" or the "Company") (TSX.V: HAN) (OTCPK: HANNF) 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 on August 2, 2017, and August 14, 2017.
Key Points:
- First tranche closing, and issuance of 10,550,713 units at an issue price of C$0.26 per unit for gross proceeds of C$2,743,185;
- Second and final tranche of the oversubscribed Offering of 2,049,287 units for gross proceeds of $532,815 is expected to close on or before August 24, 2017. This will bring financing to a total of 12,600,000 units for gross proceeds of up to Cdn$3,276,000 as announced on August 14, 2017;
Under the First Tranche, the Company issued 10,550,713 units (the "Units") at an issue price of C$0.26 per Unit for gross proceeds of C$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 of Cdn$0.40 for a period of two years expiring August 18, 2019. The Company paid broker fees of $43,453.80 cash 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 in Canada expiring on December 19, 2017.
The second and final tranche of the Offering which is necessary to accommodate the oversubscription announced by the Company on August 14, 2017, is expected to close on or before August 24th 2017. 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 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, 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.
SOURCEHannan Metals Ltd.
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