November 18, 2010 (Vancouver, British Columbia), Hana Mining Ltd. (the "Company"), (TSX-V: HMG) (Frankfurt: 4LH): On January 21, 2010 and May 25, 2010, the Company announced the plan of arrangement (the "Arrangement") with New Hana Copper Mining Ltd. ("New Hana"), wherein the Company will spin-out Hana Mining Botswana (Proprietary) Limited ("Hana Botswana") and the Kuke Property to New Hana.
The Arrangement was approved by shareholders on August 12, 2010 and by the Supreme Court of British Columbia on August 17, 2010. The Company has also received conditional listing acceptance from the TSX Venture Exchange for the listing of New Hana's common shares, and has commitments for adequate financing for New Hana (described below), so all preconditions for the closing of the Arrangement have now been met. The Company has therefore determined November 26, 2010 as the date of record for the Arrangement (the "Effective Date").
As of the Effective Date, every four (4) common shares of the Company will entitle the shareholders of record to receive one additional common share of New Hana. Shareholders of the Company will receive the New Hana common shares, in addition to the common shares of the Company they already hold on the revised basis as set out above. Only shareholders of record on the Effective Date will be entitled to receive the New Hana common shares under the Arrangement. Since share trade settlements take three days for processing, this means that November 23, 2010 will be the last day of trading of the Company's shares for investors who wish to receive New Hana shares.
New Hana will complete a brokered and non-brokered private placement (the "New Hana Financing") of a minimum of 12,000,000 and up to a maximum of 20,000,000 units of New Hana (the "Units") at an offering price of $0.25 per Unit. Each Unit will consist of one (1) common share of New Hana, and one-half (1/2) of a non-transferable share purchase warrant (the "Warrants"). Each whole Warrant will entitle the investor to acquire one additional common share of New Hana at an exercise price of $0.50 per share for a period of one year from the closing date of the financing. It is anticipated that the New Hana Financing will close on or about December 2, 2010.
Investors are referred to the Information Circular dated July 12, 2010 prepared in connection with the Arrangement and available on SEDAR under the Company's profile for further information (www.sedar.com). Trading in the securities of the Company should be considered highly speculative.
About Hana Mining:
The Ghanzi Project is located in the center of the Kalahari Copper Belt in northwestern Botswana. The Ghanzi property covers 2,169 square kilometres, and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 kilometres. This favorable geology extends over an estimated strike length of 600 kilometres. Hana Mining released results of its most recent NI 43-101 compliant resource estimate for the Ghanzi Project on April 21, 2010, announcing an inferred mineral resource of 3.9 billion pounds of copper and 62.1 million ounces of silver from 177 million tonnes. This mineral resource estimate consists of 73.5 million tonnes grading 1.5% Cu and 19 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.7% Cu and 12 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 7 g/t Ag in Zone 6; all at a cut-off grade of 0.75% Cu. Also included is 83.6 million tonnes grading 0.46% Cu and 3.6 g/t Ag at a cut-off grade of 0.30% in the Chalcocite Zone.
The Banana Zone exhibits certain areas of higher grade Cu and Ag mineralization, particularly between sections 49700 to 52000 on the North limb and sections 63000 to 71000 on both the North and South limbs, which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These higher grade pockets tend to be well within open pit depth parameters and represent opportunities to improve early cash flow and overall returns in development.
The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study is currently underway (funded by the World Bank and the governments of Botswana and Namibia) to support completion of a rail line link that would connect Botswana with the Namibian port of Walvis Bay, on the Atlantic coast. The closest existing railhead to port is at Gobabis, in Namibia, approximately 550 km from our property. Construction has begun on the 600MW expansion of the government-owned Moropule Power Plant, having secured US$825 million project funding in May 2009. The Ghanzi Copper- Silver Project is currently accessed by the paved Trans-Kalahari highway, which passes within 15 km of the property.
The Ghanzi property is one of Africa's premier future copper-silver resources.
FOR FURTHER INFORMATION
Contact
Marek Kreczmer, CEO
Hana Mining Ltd.
Tel: (604) 676-0824
Email: info@hanamining.com
Website: www.hanamining.com
Patrick Donnelly, VP - Corporate Development
Hana Mining Ltd.
Tel: (604) 676-0824
Email: patrick@hanamining.com
Website: www.hanamining.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press 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.
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http://www.hanamining.com/s/NewsReleases.asp?ReportID=429031