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VANCOUVER, April 24, 2019 /CNW/ - Hannan
Metals Limited ("Hannan" or the "Company") (TSXV: HAN)
(OTCPK: HANNF) announces the closing of the first tranche
(the "First Tranche") of its previously announced private
placement financing (the "Offering"). Under the First
Tranche, the Company has issued 4,205,000 Units at an issue price
of C$0.10 per Unit for gross proceeds
of C$420,500. Each Unit
comprises one common share (a "Share") and one-half of one
common share purchase warrant (a "Warrant"). Each
Warrant entitles the holder to purchase one additional Share of the
Company at an exercise price of C$0.15 for a period of two years expiring on
April 24, 2021. The Company
paid cash finder's fees of C$600 to
an arm's length finder.
The Company plans to use the net proceeds to fund exploration
expenditures at the Company's projects in Peru and Ireland, as well as for general working
capital and corporate purposes.
The second tranche of the Offering for additional proceeds of
C$79,500 is expected to close on or
about April 30, 2019.
Certain directors and officers of the Company (the
"Insiders") participated in the First Tranche and purchased
an aggregate of 1,450,000 Units for aggregate gross proceeds of
C$145,000. Participation by
Insiders of the Company in the Offering is considered a "related
party transaction" pursuant to Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is exempt from
the requirements to obtain a formal valuation and minority
shareholder approval in connection with the Insiders' participation
in the Offering in reliance of sections 5.5(a) and 5.7(a) of MI
61-101, respectively. The Offering was unanimously approved
by the disinterested members of the Board of Directors of the
Company.
All securities issued pursuant to the First Tranche are subject
to a four-month and one day hold period under applicable securities
laws in Canada expiring on
August 25, 2019.
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 or to, or for
the account or benefit of, a U.S. person (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) (OTCPK: HANNF)
Hannan Metals Limited is a base metal project generation
company. It has 100% ownership of the County Clare Zn-Pb-Ag project
in Ireland, which consists of 9
prospecting licenses for 35,444 hectares and has recently filed
mineral claim applications for 35,400 hectares within the San
Martin Province in Peru searching
for copper and silver. Over the last decade, the team behind
Hannan has forged a long and successful record of discovering,
financing and advancing mineral projects in Europe and Peru.
On behalf of the Board,
"Michael
Hudson"
Michael Hudson, Chairman &
CEO
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: The successful completion of the second tranche of the
Offering, the granting of the claim applications in Peru, community relations, 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.
SOURCE Hannan Metals Ltd.
