NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
May 20, 2010 (Vancouver, British Columbia), Hana Mining Ltd. ("the Company"), (TSX-V: HMG) (Frankfurt: 4LH) Further to the Company's news release dated April 29, 2010, the Company is pleased to announce that it has closed a bought-deal private placement for gross proceeds of $24,150,000 by the issuance of 11,500,000 common shares of the Company (including exercise in full of the underwriters' over-allotment option) at a price of $2.10 per share. The underwriting syndicate was co-led by Cormark Securities Inc., Raymond James Ltd. and Canaccord Genuity Corp. and included Macquarie Capital Markets Canada Ltd., Dundee Securities Corporation and Salman Partners Inc.. The shares issued have a 4 month hold period, restricting resale until after September 21, 2010.
The underwriters received a cash commission of 6.0% of the gross proceeds.
The Company will use the net proceeds from the offering to carry out further exploration and development work on its Ghanzi Copper-Silver project in Botswana, including the preparation of a feasibility study, and for general working capital requirements.
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 sq. km., and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 37.6 kilometres. This favourable geology extends over the entire strike length of 600 kilometres. Hana Mining released results of its most recent NI 43-101 resource estimate for the Ghanzi Project on April 21, 2010, announcing an inferred resource of 3.9 billion lbs of copper and 62.1 million oz of silver from 177 million tonnes. This resource estimate is based on a 0.75% Cu cutoff grade, and averages 1.50% Cu and 18 g/t Ag from the Banana Zone and a 0.30% Cu cutoff grade, and averages of 0.46% Cu and 3.58% AG from the new Chalcocite Zone.
The Banana Zone exhibits certain areas of high grade Cu and Ag mineralization, particularly in the New Discovery area and the fold nose at the northern end of the zone, 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 contemplated rail/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. Currently, our project is served by the paved Trans-Kalahari highway, which passes within 15 km of the property.
Hana Mining is focused on demonstrating that the Ghanzi property represents one of Africa's premier future copper-silver resources.
FOR FURTHER INFORMATION
Contact:Marek Kreczmer, CEO & Chairman
Hana Mining Ltd.
Tel: (604) 676-0824
Email:
info@hanamining.comWebsite:
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.
You can also view this News Release on our website at:
http://www.hanamining.com/s/NewsReleases.asp?ReportID=400740