May 25, 2010 (Vancouver, British Columbia), Hana Mining Ltd. ("the Company"), (TSX-V: HMG) (Frankfurt: 4LH) further to the Company's new release dated January 21, 2010, the Company is pleased to announce that it has amended certain terms of the plan of arrangement (the "Arrangement") with New Hana Copper Mining Ltd. ("New Hana") and Hana Mining Botswana (Proprietary) Limited ("Hana Botswana"), wherein the Company will spin-out Hana Botswana to New Hana.
As previously announced, the Company will determine a date of record for the Arrangement, after receipt of all required regulatory, court, and shareholder approvals (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, instead of every ten (10) common shares, as originally announced. It is anticipated that New Hana will then seek a stock exchange listing for its common shares on the TSX Venture Exchange (the "Exchange"), and complete an equity offering to raise at least $3,000,000 up to a maximum of $5,000,000 to further develop the eleven (11) prospecting licenses held by Hana Botswana. 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.
The completion of the Arrangement is subject to the fulfilment of a number of prior conditions, including Exchange acceptance of the Arrangement and the listing of the New Hana common shares, the approval of the Arrangement by the shareholders of the Company by a special resolution of at least 2/3rds of the shares voted in person or by proxy at a general meeting held to consider the Arrangement, the approval of the Supreme Court of British Columbia, and the completion of the New Hana Financing. The Arrangement cannot close until all of these conditions precedent are met. There can be no assurance that the Arrangement will be completed as proposed or at all. Investors are cautioned that except as disclosed in the Information Circular to be prepared in connection with the Arrangement, and information released or received with respect to the Arrangement may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.
It is anticipated that the general meeting of the shareholders of the Company to approve the Arrangement will be held sometime in July 2010. For further details concerning the Arrangement, investors are referred to the Company's earlier news release dated January 21, 2010.
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.com
Website: www.hanamining.com
Neither the TSX Venture Exchange or its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) have reviewed nor do they 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=401143