July
14th, 2009 (Vancouver, British Columbia). Hana Mining
Ltd. ("the Company"), (TSX-V: HMG) (Frankfurt: 4LH) is pleased
to announce that it has agreed to purchase an initial, indirect 70%
interest in the five prospecting licenses ("the Licenses")
comprising the Ghanzi copper-silver project located in Botswana.
The Company has concluded a Share Purchase Agreement ("the
Agreement") with the shareholders of Stellent (Proprietary)
Limited ("Stellent"), a privately held corporation located in
Gaborone, Botswana, the holder of the Licenses, which stipulates the
terms of the purchase of all the issued shares of Stellent by the
Company and, effectively, transfer of control over the Licenses. In
addition to the acquisition and purchase of an initial 70% share interest
in Stellent, the Agreement also grants to the Company the exclusive
right to purchase the remaining 30% share interest in Stellent, upon
certain terms and conditions.
The consideration payable by the Company for the purchase of the share
interests in Stellent is as follows:
Purchase of initial 70% share interest
- Cash payment-US$200,000;
- Common Stock Issuance- 166,666 common shares, subject to
a four (4) month hold period; and
- Warrants Issuance- 666,666 share purchase warrants, each
warrant entitling the purchase of one (1) additional common share
for a period of 24 months, at a price of CDN$0.32 cents per share.
Upon closing of the
acquisition and purchase of the initial 70% share interest, the Company
will appoint three (3) members to the Board of Directors of Stellent
with the Stellent shareholders appointing one (1) director.
Purchase of additional 20% share interest
- Cash Payment - US$9,000,000 to be paid upon the earlier
of the announcement of the completion of a positive, bankable
feasibility study, the sale of all of the issued common shares of
Hana Mining Ltd. to a third party or, at the Company's election.
Purchase of
final 10% share interest
- Warrants Issuance - 4,000,000 share purchase warrants,
each warrant entitling the purchase of one (1) additional common
share for a period of 24 months from the date of issuance, at a
price of CDN$2.00 per share; such warrants to be issued ten (10)
days following the announcement of the completion of a positive,
bankable feasibility study.
The Agreement is subject to
its acceptance for filing by the TSX Venture Exchange and supercedes
the previous Letter of Intent made between Stellent, the shareholders
of Stellent and the Company dated June 11, 2007, as amended.
Hana Mining's CEO, Marek Kreczmer, commented as follows:
"I am very pleased for the Company shareholders and for Stellent,
as this represents the conclusion of a process of negotiation which
began in 2007, with our securing initial rights to explore the ground
at Ghanzi, and it also reflects the value growth in the resource which
we have unlocked over that time. This Agreement establishes a clear,
defined path to 100% ownership of the project for Hana Mining, it
establishes the cost of that consolidated ownership position, and it
lets Company shareholders fully participate in the future potential we
see for this project."
About Hana Mining's Ghanzi Copper-Silver Project in Botswana
The Ghanzi Project is located in northwestern Botswana. The property
consists of a bloc of Licences covering 2,200 sq. km. The area contains
near surface sediment-hosted copper-silver deposits with a demonstrated
cumulative strike length of over 16 kilometres. Significant
infrastructure is planned or is in place in the region: a new 800
megawatt power plant is currently under construction in Botswana that
will provide sufficient power for the project and the paved
trans-Kalahari highway which runs from Namibia to South Africa, passes
within 15 km of the property.
The Company recently released results of it's first NI 43-101 resource
estimate for the Ghanzi Project (see press release dated June 1, 2009)
, announcing an inferred resource of 2.9 Billion lb of copper and 51.1
Million oz of silver (0.3% Cu cut-off grade). The company has
sufficient working capital to continue drilling the Ghanzi property,
with the goal of making the property one of Africa's premier
copper-silver resources.
Hana Mining Ltd. is listed on the TSX Venture Exchange
("HMG") and the Frankfurt Exchange ("4LH").
FOR FURTHER INFORMATION
Contact:
Peter G. Wilson
President & Director
Hana Mining Ltd.
Tel: (604) 676-0824
Email: info@hanamining.com
Website: www.hanamining.com
The
TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Statements
in this press release, other than purely historical information,
including statements relating to the Company's future plans and
objectives or expected results, may include forward-looking statements.
Forward-looking statements are based on numerous assumptions and are
subject to all of the risks and uncertainties inherent in resource
exploration and development. As a result, actual results may vary
materially from those described in the forward-looking statements.
You can also view this News Release
on our website at:
http://www.hanamining.com/s/NewsReleases.asp?ReportID=355892