Non-brokered sale conducted with investor Cupric to fund exploration
By Devika Patel
Knoxville, Tenn., Feb. 6 - Hana Mining Ltd. said it settled a C$14.92 million non-brokered private placement of stock. The deal priced for C$14 million Jan. 26 and was increased to C$15 million on Jan. 27.
The company sold 11,054,648 common shares at C$1.35 apiece. The price per share is a 7.53% discount to the Jan. 25 closing share price, C$1.46.
Cupric Canyon Capital LP bought 6.25 million units for C$8.44 million. Cupric now holds 10% of the company's outstanding common shares. The investor is focused on acquiring interests in undeveloped copper assets with a known resource and adding value to them by helping to advance projects through the development process.
Proceeds will be used to complete the Preliminary Economic Assessment and the feasibility study of the Ghanzi copper and silver project and for exploration and development of the project, related working capital and general corporate purposes.
"This agreement is the culmination of many months of building a relationship between the company and Cupric," chief executive officer and chairman, Marek Kreczmer said in a press release. "Cupric's management team brings valuable experience in the development and operation of copper projects in North America, South America and Africa, most notably the world-class Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo.
"I look forward to working with the management of Cupric towards the development of the Ghanzi Project," Kreczmer continued. "With this financing in place we are able to proceed with our C$18 million budget for 2012. In addition to completing the PEA, we will submit the feasibility study to the Botswana Ministry of Minerals, Energy and Water Resources and will allocate C$5 million for a multiphase regional exploration campaign outside of the Banana Zone at Ghanzi."
Hana is a copper and silver exploration company based in Vancouver, B.C.
| Issuer: | Hana Mining Ltd.
|
| Issue: | Common shares
|
| Amount: | C$14,923,775
|
| Shares: | 11,054,648
|
| Price: | C$1.35
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Cupric Canyon Capital LP (for C$8,437,500)
|
| Pricing date: | Jan. 26
|
| Upsized: | Jan. 27
|
| Settlement date: | Feb. 3
|
| Stock symbol: | TSX Venture: HMG
|
| Stock price: | C$1.46 at close Jan. 25
|
| Market capitalization: | C$166.23 million
|
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